| Pennsylvania                      |   | 56-2637804             |
|-----------------------------------|--------|------------------------|
| (State or other jurisdiction      |   | (I.R.S. Employer       |
| of incorporation or organization) |   | Identification Number) |
|                              |   |                   |
| 541 Lawrence Road                 |   |                   |
| Broomall, Pennsylvania            |   | 19008                  |
| (Address)                         |   | (Zip Code)             |

| Common Stock (par value $0.01 per share) |   | Nasdaq Global Market                      |
|------------------------------------------|--------|-------------------------------------------|
| Title of Class                           |   | Name of Each Exchange on Which Registered |

| (1) | Portions of the definitive proxy statement for the Annual Meeting of Stockholders to be held April 27, 2011 are incorporated into Parts II and III.  *Item 9 incorporated. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|       |    |                                                                                                                              | PAGE   |
|------------|---------|-----------------------------------------------------------------------------------------------------------------------------------|--------|
|       |    |                                                                                                                              |   |
| PART I:    | Item 1  | Business                                                                                                                          | 3      |
|       | Item 1A | Risk Factors                                                                                                                      | 33     |
|       | Item 1B | Unresolved Staff Comments                                                                                                         | 33     |
|       | Item 2  | Properties                                                                                                                        | 33     |
|       | Item 3  | Legal Proceedings                                                                                                                 | 34     |
|       | Item 4  | [Reserved]                                                                                                                        | 34     |
|       |    |                                                                                                                              |   |
| PART II:   | Item 5  | Market for the Registrant’s Common Equity, Related  Stockholder Matters and Issuer Purchases of Equity Securities | 35     |
|       | Item 6  | Selected Financial Data                                                                                                           | 37     |
|       | Item 7  | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                       | 39     |
|       | Item 8  | Financial Statements and Supplementary Data                                                                                       | 51     |
|       | Item 9  | Changes In and Disagreements with Accountants on Accounting and Financial Disclosure                                              | 86     |
|       | Item 9A | Controls and Procedures                                                                                                           | 86     |
|       | Item 9B | Other Information                                                                                                                 | 86     |
|       |    |                                                                                                                              |   |
| PART III:  | Item 10 | Directors, Executive Officers and Corporate Governance                                                                            | 87     |
|       | Item 11 | Executive Compensation                                                                                                            | 87     |
|       | Item 12 | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                               | 87     |
|       | Item 13 | Certain Relationships and Related Transactions and Director Independence                                                          | 87     |
|       | Item 14 | Principal Accountant Fees and Services                                                                                            | 87     |
|       |    |                                                                                                                              |   |
| PART IV:   | Item 15 | Exhibits, Financial Statements and Schedules                                                                                      | 88     |
|       |    |                                                                                                                              |   |
| SIGNATURES | 89      |

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|                  |   | December 31,           |    |
|----------------------------|--------|------------------------|---------|
|                       |   | 2010                   |    |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                       |   | Amount                 |    |   | % |   |   | Amount |   |   | % |   |   | Amount |   |   | % |   |   | Amount |   |   | % |   |   | Amount |   |   | % |   |
|                       |   | (Dollars in Thousands) |    |
| Real estate loans:         |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Single-family (1) (2)      |   | $                      | 114,985 |   |   |   | 39.44 | % |   | $ | 114,953 |   |   |   | 39.82 | % |   | $ | 116,683 |   |   |   | 41.43 | % |   | $ | 111,499 |   |   |   | 42.92 | % |   | $ | 108,551 |   |   |   | 45.48 | % |
| Multi-family               |   |                   | 6,293   |   |   |   | 2.16 |   |   |   | 1,231 |   |   |   | 0.43 |   |   |   | 1,282 |   |   |   | 0.46 |   |   |   | 1,673 |   |   |   | 0.64 |   |   |   | 2,088 |   |   |   | 0.87 |   |
| Commercial                 |   |                   | 131,509 |   |   |   | 45.11 |   |   |   | 131,874 |   |   |   | 45.68 |   |   |   | 123,465 |   |   |   | 43.84 |   |   |   | 122,703 |   |   |   | 47.24 |   |   |   | 108,339 |   |   |   | 45.39 |   |
| Land and construction: (3) |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential                |   |                   | 8,881   |   |   |   | 3.05 |   |   |   | 12,284 |   |   |   | 4.25 |   |   |   | 16,372 |   |   |   | 5.81 |   |   |   | 6,034 |   |   |   | 2.32 |   |   |   | 6,700 |   |   |   | 2.81 |   |
| Commercial                 |   |                   | 14,876  |   |   |   | 5.10 |   |   |   | 12,297 |   |   |   | 4.26 |   |   |   | 8,889 |   |   |   | 3.16 |   |   |   | 8,557 |   |   |   | 3.29 |   |   |   | 5,074 |   |   |   | 2.13 |   |
| Total real estate loans    |   |                   | 276,544 |   |   |   | 94.86 |   |   |   | 272,639 |   |   |   | 94.44 |   |   |   | 266,691 |   |   |   | 94.70 |   |   |   | 250,466 |   |   |   | 96.41 |   |   |   | 230,752 |   |   |   | 96.68 |   |
|                       |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer:                  |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Student                    |   |                   | 6,747   |   |   |   | 2.31 |   |   |   | 7,077 |   |   |   | 2.45 |   |   |   | 5,455 |   |   |   | 1.94 |   |   |   | 1,782 |   |   |   | 0.69 |   |   |   | 1,779 |   |   |   | 0.74 |   |
| Savings account            |   |                   | 362     |   |   |   | 0.13 |   |   |   | 482 |   |   |   | 0.17 |   |   |   | 430 |   |   |   | 0.15 |   |   |   | 477 |   |   |   | 0.18 |   |   |   | 561 |   |   |   | 0.24 |   |
| Other                      |   |                   | 43      |   |   |   | 0.02 |   |   |   | 55 |   |   |   | 0.01 |   |   |   | 51 |   |   |   | 0.02 |   |   |   | 109 |   |   |   | 0.04 |   |   |   | 103 |   |   |   | 0.04 |   |
| Total consumer loans       |   |                   | 7,152   |   |   |   | 2.46 |   |   |   | 7,614 |   |   |   | 2.63 |   |   |   | 5,936 |   |   |   | 2.11 |   |   |   | 2,368 |   |   |   | 0.91 |   |   |   | 2,443 |   |   |   | 1.02 |   |
|                       |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial business loans  |   |                   | 7,822   |   |   |   | 2.68 |   |   |   | 8,458 |   |   |   | 2.93 |   |   |   | 8,985 |   |   |   | 3.19 |   |   |   | 6,924 |   |   |   | 2.68 |   |   |   | 5,485 |   |   |   | 2.30 |   |
|                       |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total loans receivable     |   |                   | 291,518 |   |   |   | 100.00 | % |   |   | 288,711 |   |   |   | 100.00 | % |   |   | 281,612 |   |   |   | 100.00 | % |   |   | 259,758 |   |   |   | 100.00 | % |   |   | 238,680 |   |   |   | 100.00 | % |
|                       |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less:                      |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deferred fees (costs)      |   |                   | 372     |   |   |   |   |   |   |   | 165 |   |   |   |   |   |   |   | 6 |   |   |   |   |   |   |   | (5 | ) |   |   |   |   |   |   | 75 |   |   |   |   |   |
| Allowance for loan losses  |   |                   | 5,090   |   |   |   |   |   |   |   | 3,538 |   |   |   |   |   |   |   | 3,169 |   |   |   |   |   |   |   | 2,831 |   |   |   |   |   |   |   | 2,719 |   |   |   |   |   |
|                       |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans receivable, net      |   | $                      | 286,056 |   |   |   |   |   |   | $ | 285,008 |   |   |   |   |   |   | $ | 278,437 |   |   |   |   |   |   | $ | 256,932 |   |   |   |   |   |   | $ | 235,886 |   |   |   |   |   |

| (1) | At December 31, 2010, 2009, 2008, 2007, and 2006, includes $-0-, $-0-, $-0-, $-0-, and $125,000 of loans classified as held for sale, respectively. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | At December 31, 2010, 2009, 2008, 2007, and 2006, includes $18.6 million, $21.4 million, $25.6 million, $29.5 million, and $28.9 million, respectively, of home equity loans and    lines. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | At December 31, 2010, 2009, 2008, 2007, and 2006, excludes $5.9 million, $10.7 million, $15.3 million, $10.8 million, and $9.7 million, respectively, of undisbursed funds on land and construction loans. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                               |   | Real Estate Loans |    |   |         |   |    |       |   |   |                      |   |
|----------------------------------------------------|--------|-------------------|---------|--------|--------------|--------|---------|------------|--------|--------|---------------------------|--------|
|                                               |   | Single-family     |    |   | Multi-family |   |    | Commercial |   |   | Land andConstruction |   |   | Consumerand OtherLoans |   |   | CommercialBusiness Loans |   |   | Total |   |
|                                               |   | (In Thousands)    |    |
|                                               |   |              |    |   |         |   |    |       |   |   |                      |   |   |   |   |   |   |   |   |   |   |
| Amounts due in:                                    |   |              |    |   |         |   |    |       |   |   |                      |   |   |   |   |   |   |   |   |   |   |
| One year or less                                   |   | $                 | 5,861   |   |         | $      | 1,207   |       |   | $      | 30,340                    |   |   | $ | 23,757 |   |   | $ | 277 |   |   | $ | 2,678 |   |   | $ | 64,120 |   |
| After one year through three years                 |   |              | 3,160   |   |         |   | 2,204   |       |   |   | 12,655                    |   |   |   | — |   |   |   | 105 |   |   |   | 2,257 |   |   |   | 20,381 |   |
| After three years through five years               |   |              | 8,623   |   |         |   | 1,900   |       |   |   | 14,428                    |   |   |   | — |   |   |   | 309 |   |   |   | 2,509 |   |   |   | 27,769 |   |
| After five years through fifteen years             |   |              | 47,368  |   |         |   | 982     |       |   |   | 55,179                    |   |   |   | — |   |   |   | 6,411 |   |   |   | 378 |   |   |   | 110,318 |   |
| Over fifteen years                                 |   |              | 49,973  |   |         |   | — |       |   |   | 18,907                    |   |   |   | — |   |   |   | 50 |   |   |   | — |   |   |   | 68,930 |   |
|                                               |   |              |    |   |         |   |    |       |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total (1)                                          |   | $                 | 114,985 |   |         | $      | 6,293   |       |   | $      | 131,509                   |   |   | $ | 23,757 |   |   | $ | 7,152 |   |   | $ | 7,822 |   |   | $ | 291,518 |   |
|                                               |   |              |    |   |         |   |    |       |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate terms on amounts due after one year: |   |              |    |   |         |   |    |       |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed                                              |   | $                 | 64,329  |   |         | $      | 3,545   |       |   | $      | 51,671                    |   |   |   | — |   |   |   | — |   |   | $ | 5,144 |   |   | $ | 124,689 |   |
| Adjustable                                         |   | $                 | 44,795  |   |         | $      | 1,541   |       |   | $      | 49,499                    |   |   |   | — |   |   | $ | 6,875 |   |   |   | — |   |   | $ | 102,711 |   |

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|                                      |   | Year Ended December 31, |    |
|-------------------------------------------|--------|-------------------------|---------|
|                                      |   | 2010                    |    |   | 2009 |   |   | 2008 |   |
|                                      |   | (In Thousands)          |    |
|                                      |   |                    |    |
| Real estate loan originations:            |   |                    |    |   |   |   |   |   |   |
| Single-family (1)                         |   | $                       | 15,836  |   |   | $ | 12,215 |   |   | $ | 24,541 |   |
| Multi-family                              |   |                    | — |   |   |   | — |   |   |   | 120 |   |
| Commercial                                |   |                    | 21,148  |   |   |   | 37,910 |   |   |   | 26,873 |   |
| Land and construction:                    |   |                    |    |   |   |   |   |   |   |   |   |   |
| Residential                               |   |                    | 4,339   |   |   |   | 3,114 |   |   |   | 4,525 |   |
| Commercial                                |   |                    | 7,073   |   |   |   | 3,628 |   |   |   | 6,536 |   |
| Total real estate loan originations       |   |                    | 48,396  |   |   |   | 56,867 |   |   |   | 62,595 |   |
|                                      |   |                    |    |   |   |   |   |   |   |   |   |   |
| Consumer originations:                    |   |                    |    |   |   |   |   |   |   |   |   |   |
| Student                                   |   |                    | — |   |   |   | 2,147 |   |   |   | 4,202 |   |
| Savings account                           |   |                    | 169     |   |   |   | 557 |   |   |   | 310 |   |
| Other                                     |   |                    | 18      |   |   |   | — |   |   |   | 4 |   |
| Total consumer loan originations          |   |                    | 187     |   |   |   | 2,704 |   |   |   | 4,516 |   |
|                                      |   |                    |    |   |   |   |   |   |   |   |   |   |
| Commercial business originations          |   |                    | 1,550   |   |   |   | 1,966 |   |   |   | 1,475 |   |
| Total loan originations                   |   |                    | 50,133  |   |   |   | 61,537 |   |   |   | 68,586 |   |
|                                      |   |                    |    |   |   |   |   |   |   |   |   |   |
| Purchase of real estate loans:            |   |                    |    |   |   |   |   |   |   |   |   |   |
| Single-family                             |   |                    | — |   |   |   | — |   |   |   | — |   |
| Multi-family                              |   |                    | — |   |   |   | — |   |   |   | — |   |
| Residential construction                  |   |                    | — |   |   |   | 1,000 |   |   |   | — |   |
| Commercial                                |   |                    | 44      |   |   |   | 3,090 |   |   |   | 175 |   |
| Commercial construction                   |   |                    | — |   |   |   | — |   |   |   | 6,300 |   |
| Total real estate loan purchases          |   |                    | 44      |   |   |   | 4,090 |   |   |   | 6,475 |   |
| Total loan originations and purchases (2) |   |                    | 50,177  |   |   |   | 65,627 |   |   |   | 75,061 |   |
|                                      |   |                    |    |   |   |   |   |   |   |   |   |   |
| Less:                                     |   |                    |    |   |   |   |   |   |   |   |   |   |
| Principal loan repayments                 |   |                    | (46,340 | ) |   |   | (54,264 | ) |   |   | (51,643 | ) |
| Transfers to OREO                         |   |                    | (669    | ) |   |   | (3,764 | ) |   |   | — |   |
| Loans and participations sold             |   |                    | — |   |   |   | (500 | ) |   |   | (1,335 | ) |
| Other, net (3)                            |   |                    | (2,120  | ) |   |   | (527 | ) |   |   | (578 | ) |
|                                      |   |                    |    |   |   |   |   |   |   |   |   |   |
| Net increase                              |   | $                       | 1,048   |   |   | $ | 6,572 |   |   | $ | 21,505 |   |

----

|   | (1) | Includes $2.9 million, $4.9 million and $5.1 million of home equity loans and lines of credit originated during the years ended December 31, 2010, 2009 and 2008, respectively. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Includes originations of loans held for sale and subsequently sold in the secondary market. |
|--------|-----|---------------------------------------------------------------------------------------------|

|   | (3) | Includes provisions for loan losses. |
|--------|-----|--------------------------------------|

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|                  |   | 30– 59 Days |    |   | 60 – 89 Days |   |    | 90 or More Days |   |
|-----------------------|--------|-----------------------------|---------|--------|-----------------------------------|--------|---------|--------------------------------|--------|
|             |   |                        |    |   | Percent                           |   |    |                           |   |   | Percent |   |   |   |   |   | Percent |   |
|             |   |                        |    |   | of Loan                      |   |    |                           |   |   | of Loan |   |   |   |   |   | of Loan |   |
|             |   | Amount                      |    |   | Category                          |   |    | Amount                         |   |   | Category |   |   | Amount |   |   | Category |   |
|                  |   | (Dollars in Thousands)      |    |
| Real estate:          |   |                        |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |
| Single-family         |   | $                           | 1,772   |   |                              |   | 1.54    | %                              |   | $ | 582 |   |   |   | 0.51 | % |   | $ | 2,382 |   |   |   | 2.07 | % |
| Multi-family          |   |                        | — |   |                              |   | — |                           |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Commercial            |   |                        | 2,134   |   |                              |   | 1.63    |                           |   |   | 1,115 |   |   |   | 0.85 |   |   |   | 2,128 |   |   |   | 1.62 |   |
| Land and construction |   |                        | — |   |                              |   | — |                           |   |   | — |   |   |   | — |   |   |   | 1,720 |   |   |   | 7.24 |   |
| Commercial business   |   |                        | — |   |                              |   | — |                           |   |   | — |   |   |   | — |   |   |   | 74 |   |   |   | 0.95 |   |
| Consumer              |   |                        | 251     |   |                              |   | 3.51    |                           |   |   | 105 |   |   |   | 1.47 |   |   |   | 284 |   |   |   | 3.97 |   |
|                  |   |                        |    |   |                              |   |    |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                 |   | $                           | 4,157   |   |                              |   |    |                           |   | $ | 1,802 |   |   |   |   |   |   | $ | 6,588 |   |   |   |   |   |

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|                                                                                       |   | December 31,           |    |
|--------------------------------------------------------------------------------------------|--------|------------------------|---------|
|                                                                                       |   | 2010                   |    |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                                                                       |   | (Dollars in Thousands) |    |
|                                                                                       |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-accruing loans:                                                                        |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate:                                                                               |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Single-family                                                                              |   | $                      | 74      |   |   | $ | 479 |   |   | $ | 762 |   |   | $ | 1,086 |   |   | $ | 874 |   |
| Multi-family                                                                               |   |                   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Commercial                                                                                 |   |                   | 2,128   |   |   |   | 1,778 |   |   |   | 3,551 |   |   |   | 416 |   |   |   | — |   |
| Land and construction                                                                      |   |                   | 11,423  |   |   |   | 3,728 |   |   |   | 896 |   |   |   | — |   |   |   | — |   |
| Commercial business                                                                        |   |                   | 74      |   |   |   | 472 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Consumer                                                                                   |   |                   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Total non-accruing loans                                                                   |   |                   | 13,699  |   |   |   | 6,457 |   |   |   | 5,209 |   |   |   | 1,502 |   |   |   | 874 |   |
|                                                                                       |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accruing loans 90 days or more delinquent:                                                 |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate:                                                                               |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Single-family                                                                              |   |                   | 2,308   |   |   |   | 1,227 |   |   |   | 1,712 |   |   |   | 563 |   |   |   | 649 |   |
| Multi-family                                                                               |   |                   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Commercial                                                                                 |   |                   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Land and construction                                                                      |   |                   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Commercial business                                                                        |   |                   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Consumer                                                                                   |   |                   | 284     |   |   |   | 153 |   |   |   | 75 |   |   |   | 32 |   |   |   | 36 |   |
| Total accruing loans 90 days or more delinquent                                            |   |                   | 2,592   |   |   |   | 1,380 |   |   |   | 1,787 |   |   |   | 595 |   |   |   | 685 |   |
|                                                                                       |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total non-performing loans                                                                 |   |                   | 16,291  |   |   |   | 7,837 |   |   |   | 6,996 |   |   |   | 2,097 |   |   |   | 1,559 |   |
|                                                                                       |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other real estate owned:                                                                   |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate acquired through, or in lieu of, foreclosure                                   |   |                   | 2,675   |   |   |   | 2,968 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Total other real estate owned                                                              |   |                   | 2,675   |   |   |   | 2,968 |   |   |   | — |   |   |   | — |   |   |   | — |   |
|                                                                                       |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total non-performing assets                                                                |   | $                      | 18,966  |   |   | $ | 10,805 |   |   | $ | 6,996 |   |   | $ | 2,097 |   |   | $ | 1,559 |   |
|                                                                                       |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total non-performing loans and troubled debt restructurings as a percentage of total loans |   |                   | 5.59    | % |   |   | 2.71 | % |   |   | 2.48 | % |   |   | 0.81 | % |   |   | 0.65 | % |
|                                                                                       |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total non-performing assets as a percentage of total assets                                |   |                   | 4.17    | % |   |   | 2.33 | % |   |   | 1.65 | % |   |   | 0.49 | % |   |   | 0.38 | % |

----

----

|                                                        |   | Year Ended December 31, |    |
|-------------------------------------------------------------|--------|-------------------------|---------|
|                                                        |   | 2010                    |    |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                                        |   | (Dollars in Thousands)  |    |
|                                                        |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Average loans receivable, net (1)                           |   | $                       | 288,192 |   |   | $ | 283,736 |   |   | $ | 271,849 |   |   | $ | 247,157 |   |   | $ | 232,520 |   |
|                                                        |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses, beginning of year                |   | $                       | 3,538   |   |   | $ | 3,169 |   |   | $ | 2,831 |   |   | $ | 2,720 |   |   | $ | 2,671 |   |
| Provision for loan losses                                   |   |                    | 2,120   |   |   |   | 528 |   |   |   | 585 |   |   |   | 120 |   |   |   | 60 |   |
| Charge-offs:                                                |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Single-family residential                                   |   |                    | (81     | ) |   |   | — |   |   |   | (3 | ) |   |   | (3 | ) |   |   | — |   |
| Multi-family residential                                    |   |                    | — |   |   |   | (6 | ) |   |   | — |   |   |   | — |   |   |   | — |   |
| Commercial real estate                                      |   |                    | (137    | ) |   |   | (153 | ) |   |   | (350 | ) |   |   | — |   |   |   | — |   |
| Land and construction                                       |   |                    | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Consumer                                                    |   |                    | (16     | ) |   |   | (1 | ) |   |   | (13 | ) |   |   | (11 | ) |   |   | (14 | ) |
| Commercial business                                         |   |                    | (365    | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Total charge-offs                                           |   |                    | (599    | ) |   |   | (160 | ) |   |   | (366 | ) |   |   | (14 | ) |   |   | (14 | ) |
| Recoveries:                                                 |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Single-family residential                                   |   |                    | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Multi-family residential                                    |   |                    | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Commercial real estate                                      |   |                    | — |   |   |   | — |   |   |   | 114 |   |   |   | — |   |   |   | — |   |
| Land and construction                                       |   |                    | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Consumer                                                    |   |                    | 1       |   |   |   | 1 |   |   |   | 5 |   |   |   | 5 |   |   |   | 3 |   |
| Commercial business                                         |   |                    | 30      |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Total recoveries                                            |   |                    | 31      |   |   |   | 1 |   |   |   | 119 |   |   |   | 5 |   |   |   | 3 |   |
|                                                        |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses, end of year                      |   | $                       | 5,090   |   |   | $ | 3,538 |   |   | $ | 3,169 |   |   | $ | 2,831 |   |   | $ | 2,720 |   |
|                                                        |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net charge-offs to average loans  receivable, net |   |                    | 0.20    | % |   |   | 0.06 | % |   |   | 0.09 | % |   |   | 0.00 | % |   |   | 0.01 | % |
|                                                        |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses to total loans receivable         |   |                    | 1.75    | % |   |   | 1.23 | % |   |   | 1.13 | % |   |   | 1.09 | % |   |   | 1.14 | % |
|                                                        |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses to total non-performing loans     |   |                    | 31.24   | % |   |   | 45.14 | % |   |   | 45.30 | % |   |   | 135.00 | % |   |   | 174.39 | % |
|                                                        |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net charge-offs to allowance for loan losses                |   |                    | 11.16   | % |   |   | 4.49 | % |   |   | 7.79 | % |   |   | 0.32 | % |   |   | 0.40 | % |

----

|                 |   | December 31,      |   |
|---------------------------|--------|------------------------|--------|
|                      |   | 2010                   |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                      |   | Amount                 |   |   | % of Loansin EachCategory toTotal Loans |   |   | Amount |   |   | % of Loansin EachCategory toTotal Loans |   |   | Amount |   |   | % of Loansin EachCategory toTotal Loans |   |   | Amount |   |   | % of Loansin EachCategory toTotal Loans |   |   | Amount |   |   | % of Loansin EachCategory toTotal Loans |   |
|                      |   | (Dollars in Thousands) |   |
|                      |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Single-family residential |   | $                      | 411    |   |   |   | 39.44 | % |   | $ | 588 |   |   |   | 39.82 | % |   | $ | 322 |   |   |   | 41.43 | % |   | $ | 391 |   |   |   | 42.92 | % |   | $ | 445 |   |   |   | 45.48 | % |
| Multi-family residential  |   |                   | 247    |   |   |   | 2.16 |   |   |   | 16 |   |   |   | 0.43 |   |   |   | 16 |   |   |   | 0.46 |   |   |   | 17 |   |   |   | 0.64 |   |   |   | 25 |   |   |   | 0.87 |   |
| Commercial real estate    |   |                   | 2,072  |   |   |   | 45.11 |   |   |   | 1,985 |   |   |   | 45.68 |   |   |   | 1,786 |   |   |   | 43.84 |   |   |   | 1,713 |   |   |   | 47.24 |   |   |   | 1,691 |   |   |   | 45.39 |   |
| Land and construction     |   |                   | 2,151  |   |   |   | 8.15 |   |   |   | 735 |   |   |   | 8.51 |   |   |   | 856 |   |   |   | 8.97 |   |   |   | 556 |   |   |   | 5.61 |   |   |   | 416 |   |   |   | 4.94 |   |
| Consumer                  |   |                   | 19     |   |   |   | 2.46 |   |   |   | 27 |   |   |   | 2.63 |   |   |   | 16 |   |   |   | 2.11 |   |   |   | 8 |   |   |   | 0.91 |   |   |   | 9 |   |   |   | 1.02 |   |
| Commercial business       |   |                   | 190    |   |   |   | 2.68 |   |   |   | 187 |   |   |   | 2.93 |   |   |   | 173 |   |   |   | 3.19 |   |   |   | 146 |   |   |   | 2.67 |   |   |   | 134 |   |   |   | 2.30 |   |
| Total                     |   | $                      | 5,090  |   |   |   | 100.00 | % |   | $ | 3,538 |   |   |   | 100.00 | % |   | $ | 3,169 |   |   |   | 100.00 | % |   | $ | 2,831 |   |   |   | 100.00 | % |   | $ | 2,720 |   |   |   | 100.00 | % |

----

|                             |   | December 31,   |   |
|----------------------------------|--------|----------------|--------|
|                             |   | 2010           |   |   | 2009 |   |   | 2008 |   |
|                             |   | (In Thousands) |   |
|                             |   |           |   |   |   |   |   |   |   |
| Mortgage-backed securities:      |   |           |   |   |   |   |   |   |   |
|                             |   |           |   |   |   |   |   |   |   |   |   |   |
| FNMA pass-through certificates   |   | $              | 8,585  |   |   | $ | 12,336 |   |   | $ | 16,788 |   |
| FHLMC pass-through certificates  |   |           | 5,813  |   |   |   | 8,798 |   |   |   | 12,641 |   |
| GNMA pass-through certificates   |   |           | 1,748  |   |   |   | 2,221 |   |   |   | 2,492 |   |
|                             |   |           |   |   |   |   |   |   |   |   |   |   |
| Total mortgage-backed securities |   | $              | 16,146 | (1) |   | $ | 23,355 | (2) |   | $ | 31,921 | (3) |

| (1) | At December 31, 2010, gross unrealized gains on such securities amounted to $831,000 and gross unrealized losses amounted to $16,000. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------|

| (2) | At December 31, 2009, gross unrealized gains on such securities amounted to $907,000 and gross unrealized losses amounted to $15,000. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------|

| (3) | At December 31, 2008, gross unrealized gains on such securities amounted to $738,000 and gross unrealized losses amounted to $157,000. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------|

----

|                                 |   | Year Ended December 31, |    |
|--------------------------------------|--------|-------------------------|---------|
|                                 |   | 2010                    |    |   | 2009 |   |   | 2008 |   |
|                                 |   | (In Thousands)          |    |
|                                 |   |                    |    |   |   |   |   |   |   |
| Mortgage-backed securities purchased |   | $                       | — |   |   | $ | — |   |   | $ | 4,340 |   |
| Mortgage-backed securities sold      |   |                    | — |   |   |   | — |   |   |   | — |   |
| Principal repayments                 |   |                    | (7,132  | ) |   |   | (8,876 | ) |   |   | (8,258 | ) |
| Change in net unrealized gain (loss) |   |                    | (77     | ) |   |   | 310 |   |   |   | 207 |   |
|                                 |   |                    |    |   |   |   |   |   |   |   |   |   |
| Net decrease                         |   | $                       | (7,209  | ) |   | $ | (8,566 | ) |   | $ | (3,711 | ) |

|                            |   | December 31, 2010      |          |
|---------------------------------|--------|----------------------------------|---------------|
|                            |   | One Yearor Less        |          |   | After One toFive Years |   |   | After Fiveto 15 Years |   |   | Over 15Years |   |   | Total |   |
|                            |   | (Dollars in Thousands) |          |
|                       |   |                             |          |   |   |   |   |   |   |   |   |   |   |   |   |
| FHLMC pass-through certificates |   | $                                | —       |   |   | $ | 2,174 |   |   | $ | 1,406 |   |   | $ | 1,884 |   |   | $ | 5,464 |   |
| FNMA pass-through certificates  |   |                             | —       |   |   |   | 4,354 |   |   |   | 2,531 |   |   |   | 1,315 |   |   |   | 8,200 |   |
| GNMA pass-through certificates  |   |                             | —       |   |   |   | — |   |   |   | — |   |   |   | 1,667 |   |   |   | 1,667 |   |
| Total                           |   | $                                |  — |   |   | $ | 6,528 |   |   | $ | 3,937 |   |   | $ | 4,866 |   |   | $ | 15,331 | (1) |
|                            |   |                             |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average yield          |   |                             | —       | % |   |   | 4.63 | % |   |   | 5.33 | % |   |   | 3.83 | % |   |   | 4.55 | % |

----

----

|                                  |   | December 31, |    |
|---------------------------------------|--------|-------------------|---------|
|                                  |   | 2010              |    |   | 2009 |   |   | 2008 |   |
|                                  |   | AmortizedCost     |    |   | FairValue |   |   | AmortizedCost |   |   | FairValue |   |   | AmortizedCost |   |   | FairValue |   |
|                                  |   | (In Thousands)    |    |
|                                  |   |              |    |
| U.S. Government and agency securities |   | $                 | 36,991  |   |   | $ | 36,784 |   |   | $ | 28,995 |   |   | $ | 28,890 |   |   | $ | 37,448 |   |   | $ | 37,814 |   |
| Municipal obligations                 |   |              | 24,644  |   |   |   | 24,519 |   |   |   | 23,446 |   |   |   | 23,796 |   |   |   | 24,256 |   |   |   | 23,958 |   |
| Mutual funds (2)                      |   |              | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Total                                 |   | $                 | 61,635  | (1) |   | $ | 61,303 | (1) |   | $ | 52,441 | (1) |   | $ | 52,686 | (1) |   | $ | 61,704 |   |   | $ | 61,772 |   |

----

| (1) | At December 31, 2010, investment securities with an amortized cost totaling $37.0 million were designated as available for sale.  At December 31, 2010, gross unrealized losses amounted to $301,000 and there were $94,000 in gross unrealized gains.  At December 31, 2010, $3.1 million or 9.1% of the Company’s investment securities were pledged to secure various obligations of the Company.  See Note 3 to the Consolidated Financial Statements in Item 8. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                  |   | At December 31, 2010 |    |
|---------------------------------------|--------|-------------------------------------|---------|
|                                  |   | One Year orLess           |    |   | After One toFive Years |   |   | After Five to 10Years |   |   | Over10 Years |   |   | Total |   |
|                                  |   | (Dollars in Thousands)              |    |
|                                  |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government and agency securities |   | $                                   | — |   |   | $ | 21,000 |   |   | $ | 10,991 |   |   | $ | 5,000 |   |   | $ | 36,991 | (1) |
| Municipal obligations                 |   |                                | — |   |   |   | — |   |   |   | 5,156 |   |   |   | 19,488 |   |   |   | 24,644 | (2) |
| Total                                 |   | $                                   | — |   |   | $ | 21,000 |   |   | $ | 16,147 |   |   | $ | 24,488 |   |   | $ | 61,635 |   |
|                                  |   |                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average yield                |   |                                | — | % |   |   | 1.25 | % |   |   | 3.01 | % |   |   | 3.82 | % |   |   | 2.73 | % |

----

----

|                                    |   | December 31,   |    |
|-----------------------------------------|--------|----------------|---------|
|                                    |   | 2010           |    |   | 2009 |   |   | 2008 |   |
|                                    |   | Amount         |    |   | Percent |   |   | Amount |   |   | Percent |   |   | Amount |   |   | Percent |   |
|                                    |   | (In Thousands) |    |
|                                    |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Passbook and statement savings accounts |   | $              | 42,847  |   |   |   | 11.1 | % |   | $ | 40,892 |   |   |   | 10.9 | % |   | $ | 39,378 |   |   |   | 12.0 | % |
| Money market accounts                   |   |           | 24,458  |   |   |   | 6.4 |   |   |   | 18,664 |   |   |   | 5.0 |   |   |   | 18,067 |   |   |   | 5.5 |   |
| Certificates of deposit                 |   |           | 254,684 |   |   |   | 66.2 |   |   |   | 251,583 |   |   |   | 67.0 |   |   |   | 207,943 |   |   |   | 63.3 |   |
| NOW and Super NOW accounts              |   |           | 50,410  |   |   |   | 13.1 |   |   |   | 48,609 |   |   |   | 13.0 |   |   |   | 48,269 |   |   |   | 14.7 |   |
| Non-interest bearing accounts           |   |           | 12,196  |   |   |   | 3.2 |   |   |   | 15,506 |   |   |   | 4.1 |   |   |   | 13,610 |   |   |   | 4.2 |   |
| Total deposits at end of year           |   | $              | 384,595 |   |   |   | 100.00 | % |   | $ | 375,254 |   |   |   | 100.00 | % |   | $ | 327,267 |   |   |   | 100.00 | % |

|                                         |   | Year Ended December 31, |   |
|----------------------------------------------|--------|-------------------------|--------|
|                                         |   | 2010                    |   |   | 2009 |   |   | 2008 |   |
|                                         |   | (In Thousands)          |   |
|                                         |   |                    |   |   |   |   |   |   |   |
| Increase (decrease) before interest credited |   | $                       | 3,774  |   |   | $ | 40,730 |   |   | $ | (9,822 | ) |
| Interest credited                            |   |                    | 5,567  |   |   |   | 7,257 |   |   |   | 8,317 |   |
| Net deposit increase (decrease)              |   | $                       | 9,341  |   |   | $ | 47,987 |   |   | $ |  (505 | ) |

|                                  |   | In Thousands |   |
|---------------------------------------|--------|--------------|--------|
|                                  |   |         |   |
| Three months or less                  |   | $            | 16,166 |   |
| Over three months through six months  |   |         | 16,611 |   |
| Over six months through twelve months |   |         | 13,429 |   |
| Over twelve months                    |   |         | 18,048 |   |
| Total                                 |   | $            | 64,254 |   |

----

|                                    |   | December 31,      |    |
|-----------------------------------------|--------|------------------------|---------|
|                                    |   | 2010                   |    |   | 2009 |   |   | 2008 |   |
|                                    |   | AverageBalance         |    |   | AverageRatePaid |   |   | AverageBalance |   |   | AverageRatePaid |   |   | AverageBalance |   |   | AverageRatePaid |   |
|                                    |   | (Dollars in Thousands) |    |
|                                    |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Passbook and statement Savings accounts |   | $                      | 42,269  |   |   |   | 0.50 | % |   | $ | 40,412 |   |   |   | 0.55 | % |   | $ | 39,155 |   |   |   | 0.55 | % |
| Money market accounts                   |   |                   | 23,243  |   |   |   | 0.71 |   |   |   | 17,604 |   |   |   | 0.76 |   |   |   | 18,545 |   |   |   | 1.63 |   |
| Certificates of deposit                 |   |                   | 254,972 |   |   |   | 1.94 |   |   |   | 227,821 |   |   |   | 2.93 |   |   |   | 203,122 |   |   |   | 3.94 |   |
| NOW and Super NOW                       |   |                   | 48,278  |   |   |   | 0.50 |   |   |   | 46,958 |   |   |   | 0.50 |   |   |   | 49,201 |   |   |   | 1.50 |   |
| Non-interest bearing accounts           |   |                   | 14,067  |   |   |   | — |   |   |   | 14,797 |   |   |   | — |   |   |   | 15,731 |   |   |   | — |   |
| Total average deposits                  |   | $                      | 382,829 |   |   |   | 1.51 | %(1) |   | $ | 347,592 |   |   |   | 2.18 | %(1) |   | $ | 325,754 |   |   |   | 2.99 | %(1) |

|                              |   | December 31, |    |   | Amounts at December 31, 2010Maturing Within |   |
|-----------------------------------|--------|-------------------|---------|--------|----------------------------------------------------------------------|--------|
| Certificates of Deposit |   | 2010              |    |   | 2009                                                                 |   |   | One Year |   |   | Two Years |   |   | Three Years |   |   | Thereafter |   |
|                         |   | (In Thousands)    |    |
|                              |   |              |    |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1.0% or less                      |   | $                 | 38,380  |   |                                                                 | $      | 2,863 |   |   | $ | 38,380 |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |
| 1.01% to 2.0%                     |   |              | 168,061 |   |                                                                 |   | 91,708 |   |   |   | 127,709 |   |   |   | 35,866 |   |   |   | 4,276 |   |   |   | 210 |   |
| 2.01% to 3.0%                     |   |              | 32,802  |   |                                                                 |   | 102,102 |   |   |   | 14,742 |   |   |   | 5,680 |   |   |   | 7,694 |   |   |   | 4,686 |   |
| 3.01% to 6.0%                     |   |              | 15,441  |   |                                                                 |   | 54,910 |   |   |   | 12,058 |   |   |   | 1,768 |   |   |   | 800 |   |   |   | 815 |   |
| Total certificates of deposit     |   | $                 | 254,684 |   |                                                                 | $      | 251,583 |   |   | $ | 192,889 |   |   | $ | 43,314 |   |   | $ | 12,770 |   |   | $ | 5,711 |   |

----

|                                                        |   | At or for the Year Ended December 31, |    |
|-------------------------------------------------------------|--------|---------------------------------------|---------|
|                                                        |   | 2010                                  |    |   | 2009 |   |   | 2008 |   |
|                                                        |   | (Dollars in Thousands)                |    |
|                                                        |   |                                  |    |   |   |   |   |   |   |
| FHLB of Pittsburgh advances:                                |   |                                  |    |   |   |   |   |   |   |
| Average balance outstanding                                 |   | $                                     | 13,148  |   |   | $ | 34,767 |   |   | $ | 37,000 |   |
| Maximum amount outstanding at any month-end during the year |   |                                  | 32,000  |   |   |   | 37,000 |   |   |   | 37,100 |   |
| Balance outstanding at end of year                          |   |                                  | — |   |   |   | 32,000 |   |   |   | 37,000 |   |
| Weighted average interest rate during the year              |   |                                  | 6.41    | % |   |   | 6.39 | % |   |   | 6.30 | % |
|                                                        |   |                                  |    |   |   |   |   |   |   |   |   |   |
| Weighted average interest rate at end of year               |   |                                  | — |   |   |   | 6.31 | % |   |   | 6.30 | % |
| Total borrowings:                                           |   |                                  |    |   |   |   |   |   |   |   |   |   |
| Average balance outstanding                                 |   | $                                     | 17,096  |   |   | $ | 34,811 |   |   | $ | 37,815 |   |
| Maximum amount outstanding at any month-end during the year |   |                                  | 35,238  |   |   |   | 37,082 |   |   |   | 39,812 |   |
| Balance outstanding at end of year                          |   |                                  | 7,384   |   |   |   | 32,021 |   |   |   | 37,198 |   |
| Weighted average interest rate during the year              |   |                                  | 5.07    | % |   |   | 6.38 | % |   |   | 6.27 | % |
| Weighted average interest rate at end of year               |   |                                  | 0.82    | % |   |   | 6.31 | % |   |   | 6.30 | % |

----

|   | · | A new independent consumer financial protection bureau will be established within the Federal Reserve Board, empowered to exercise broad regulatory, supervisory and enforcement authority with respect to both new and existing consumer financial protection laws. Smaller financial institutions, like Alliance Bank, will be subject to the supervision and enforcement of their primary federal banking regulator with respect to the federal consumer financial protection laws. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Tier 1 capital treatment for “hybrid” capital items like trust preferred securities is eliminated subject to various grandfathering and transition rules. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | The current prohibition on payment of interest on demand deposits was repealed, effective July 21, 2011. |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | · | Deposit insurance is permanently increased to $250,000 and unlimited deposit insurance for noninterest-bearing transaction accounts extended through the end of 2012. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The deposit insurance assessment base calculation will equal the depository institution’s total assets minus the sum of its average tangible equity during the assessment period. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The minimum reserve ratio of the Deposit Insurance Fund increased to 1.35 percent of estimated annual insured deposits or assessment base; however, the Federal Deposit Insurance Corporation is directed to “offset the effect” of the increased reserve ratio for insured depository institutions with total consolidated assets of less than $10 billion. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Authority over savings and loan holding companies will transfer to the Federal Reserve Board. |
|--------|--------|-----------------------------------------------------------------------------------------------|

|   | · | Leverage capital requirements and risk based capital requirements applicable to depository institutions and bank holding companies will be extended to thrift holding companies.  The Federal Reserve Board has not issued regulations that addresses the levels of these capital requirements and when they will apply to Alliance Bancorp. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The Federal Deposit Insurance Act was amended to direct federal regulators to require depository institution holding companies to serve as a source of strength for their depository institution subsidiaries. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The Securities and Exchange Commission is authorized to adopt rules requiring public companies to make their proxy materials available to shareholders for nomination of their own candidates for election to the board of directors. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Public companies will be required to provide their shareholders with a non-binding vote: (i) at least once every three years on the compensation paid to executive officers, and (ii) at least once every six years on whether they should have a “say on pay” vote every one, two or three years. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | A separate, non-binding shareholder vote will be required regarding golden parachutes for named executive officers when a shareholder vote takes place on mergers, acquisitions, dispositions or other transactions that would trigger the parachute payments. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Securities exchanges will be required to prohibit brokers from using their own discretion to vote shares not beneficially owned by them for certain “significant” matters, which include votes on the election of directors, executive compensation matters, and any other matter determined to be significant. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Stock exchanges will be prohibited from listing the securities of any issuer that does not have a policy providing for (i) disclosure of its policy on incentive compensation payable on the basis of financial information reportable under the securities laws, and (ii) the recovery from current or former executive officers, following an accounting restatement triggered by material noncompliance with securities law reporting requirements, of any incentive compensation paid erroneously during the three-year period preceding the date on which the restatement was required that exceeds the amount that would have been paid on the basis of the restated financial information. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Disclosure in annual proxy materials will be required concerning the relationship between the executive compensation paid and the financial performance of the issuer. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Item 402 of Regulation S-K will be amended to require companies to disclose the ratio of the Chief Executive Officer’s annual total compensation to the median annual total compensation of all other employees. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Smaller reporting companies are exempt from complying with the internal control auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                           | Total              |   | Tier 1             |   | Tier 1           |
|--------------------------------|--------------------|--------|--------------------|--------|------------------|
| Capital Category               | Risk-based Capital |   | Risk-based Capital |   | Leverage Capital |
| Well capitalized               | 10% or more        |   | 6% or more         |   | 5% or more       |
| Adequately capitalized         | 8% or more         |   | 4% or more         |   | 4% or more       |
| Undercapitalized               | Less than 8%       |   | Less than 4%       |   | Less than 4%     |
| Significantly undercapitalized | Less than 6%       |   | Less than 3%       |   | Less than 3%     |

----

|   | · | acquiring or retaining a majority interest in a subsidiary; |
|--------|--------|-------------------------------------------------------------|

|   | · | investing as a limited partner in a partnership the sole purpose of which is direct or indirect investment in the acquisition, rehabilitation or new construction of a qualified housing project, provided that such limited partnership investments may not exceed 2% of the bank’s total assets; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | acquiring up to 10% of the voting stock of a company that solely provides or reinsures directors’, trustees’ and officers’ liability insurance coverage or bankers’ blanket bond group insurance coverage for insured depository institutions; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | acquiring or retaining the voting shares of a depository institution if certain requirements are met. |
|--------|--------|-------------------------------------------------------------------------------------------------------|

|   | · | the total capital distributions for the applicable calendar year exceed the sum of the institution’s net income for that year to date plus the institution’s retained net income for the preceding two years; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the institution would not be at least adequately capitalized following the distribution; |
|--------|--------|------------------------------------------------------------------------------------------|

|   | · | the distribution would violate any applicable statute, regulation, agreement or Office of Thrift Supervision-imposed condition; or |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the institution is not eligible for expedited treatment of its filings with the Office of Thrift Supervision. |
|--------|--------|---------------------------------------------------------------------------------------------------------------|

----

----

----

|   | · | the institution may not engage in any new activity or make any new investment, directly or indirectly, unless such activity or investment is permissible for a national bank; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the branching powers of the institution shall be restricted to those of a national bank; and |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | · | payment of dividends by the institution shall be subject to the rules regarding payment of dividends by a national bank. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------|

----

----

|    Description/Address          |   |    Leased/Owned |   | Net BookValue ofPremises andFixed Assets |   |   |  Amount ofDeposits |   |
|------------------------------------------------|--------|--------------------------------|--------|------------------------------------------|--------|--------|-------------------------|--------|
|                                           |   |                           |   | (In Thousands)                           |   |
| MAIN OFFICE                                    |   |                           |   |                                     |   |   |                    |   |
|                                           |   |                           |   |                                     |   |   |                    |   |
| Lawrence Park                                  |   | Owned                          |   | $                                        | 1,427  |   |                    | $      | 86,383 |   |
| 541 Lawrence Road                              |   |                           |   |                                     |   |   |                    |   |   |   |
| Broomall,  PA  19008       |   |                           |   |                                     |   |   |                    |   |   |   |
|                                           |   |                           |   |                                     |   |   |                    |   |   |   |
| BRANCH OFFICES                                 |   |                           |   |                                     |   |   |                    |   |   |   |
|                                           |   |                           |   |                                     |   |   |                    |   |   |   |
| Upper Darby                                    |   | Leased (1)                     |   |                                     | 218    |   |                    |   | 40,589 |   |
| 69th and Walnut Sts                            |   |                           |   |                                     |   |   |                    |   |   |   |
| Upper Darby,  PA  19082    |   |                           |   |                                     |   |   |                    |   |   |   |
|                                           |   |                           |   |                                     |   |   |                    |   |   |   |
| Secane                                         |   | Leased (2)                     |   |                                     | 111    |   |                    |   | 64,003 |   |
| 925 Providence Road                            |   |                           |   |                                     |   |   |                    |   |   |   |
| Secane,  PA  19018         |   |                           |   |                                     |   |   |                    |   |   |   |
|                                           |   |                           |   |                                     |   |   |                    |   |   |   |
| Newtown Square                                 |   | Leased (3)                     |   |                                     | 20     |   |                    |   | 32,852 |   |
| 252 & West Chester Pike                    |   |                           |   |                                     |   |   |                    |   |   |   |
| Newtown Square,  PA  19073 |   |                           |   |                                     |   |   |                    |   |   |   |
|                                           |   |                           |   |                                     |   |   |                    |   |   |   |
| Havertown                                      |   | Leased (4)                     |   |                                     | 82     |   |                    |   | 52,832 |   |
| 500 E. Township Line Road                      |   |                           |   |                                     |   |   |                    |   |   |   |
| Havertown,  PA  19083      |   |                           |   |                                     |   |   |                    |   |   |   |
|                                           |   |                           |   |                                     |   |   |                    |   |   |   |
| Lansdowne                                      |   | Owned                          |   |                                     | 189    |   |                    |   | 24,951 |   |
| 9 E. Baltimore Pike                            |   |                           |   |                                     |   |   |                    |   |   |   |
| Lansdowne,  PA  19050      |   |                           |   |                                     |   |   |                    |   |   |   |
|                                           |   |                           |   |                                     |   |   |                    |   |   |   |
| Springfield                                    |   | Leased (5)                     |   |                                     | 389    |   |                    |   | 41,654 |   |
| 153 Saxer Avenue                               |   |                           |   |                                     |   |   |                    |   |   |   |
| Springfield, PA 19064                          |   |                           |   |                                     |   |   |                    |   |   |   |
|                                           |   |                           |   |                                     |   |   |                    |   |   |   |
| Shoppes at Brinton Lake                        |   | Leased (6)                     |   |                                     | 85     |   |                    |   | 27,904 |   |
| 979 Baltimore Pike                             |   |                           |   |                                     |   |   |                    |   |   |   |
| Glen Mills, PA  19342                |   |                           |   |                                     |   |   |                    |   |   |   |
|                                           |   |                           |   |                                     |   |   |                    |   |   |   |
| Paoli Shopping Center                          |   | Leased (7)                     |   |                                     | 26     |   |                    |   | 13,427 |   |
| 82 E. Lancaster Ave.                           |   |                           |   |                                     |   |   |                    |   |   |   |
| Paoli, PA  19301                     |   |                           |   |                                     |   |   |                    |   |   |   |

----

----

----

| Independent Registered Public Accounting Firm | Investor Information                              |
|-----------------------------------------------|---------------------------------------------------|
| ParenteBeard LLC                              | Investors, analysts and others seeking            |
| 1200 Atwater Drive, Suite 225                 | information may contact:                          |
| Malvern, PA 19355                             | Kathleen P. Lynch                                 |
|                                          | Corporate Secretary                               |
|                                          | 541 Lawrence Road                                 |
| Market Makers                                 | Broomall, PA 19008-3599                           |
| Stifel Nicholas & Company, Inc.           | (610) 353-2900                                    |
| Sandler O’ Neill & Partners, LP     |                                              |
| USB Financial Services, Inc.                  | Transfer Agent                                    |
|                                          | Direct questions regarding dividend checks,       |
|                                          | address and name changes or lost certificates to: |
|                                          | Registrar and Transfer Company                    |
| Securities Counsel                            | 10 Commerce Drive                                 |
| Elias, Matz, Tiernan & Herrick LLP        | Cranford, NJ 07016                                |
| 734 15th Street, NW, 11th Floor               |                                              |
| Washington, D.C. 20005                        |                                              |

----

| For the Quarter Ended |   | High   |   |   | Low    |   |   | Close  |   |   | Cash Dividends Declared |   |
|-----------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-------------------------|--------|
|                  |   |   |   |   |   |   |   |   |   |   |                    |   |
| December 31, 2010     |   | $      | 9.25   |   |   |   | 7.00   |   |   |   | 9.15                    |   |   |   | .03 |   |
|                  |   |   |   |   |   |   |   |   |   |   |                    |   |   |   |   |   |
| September 30, 2010    |   |   | 8.44   |   |   |   | 7.20   |   |   |   | 7.29                    |   |   |   | .03 |   |
|                  |   |   |   |   |   |   |   |   |   |   |                    |   |   |   |   |   |
| June 30, 2010         |   |   | 8.45   |   |   |   | 8.00   |   |   |   | 8.30                    |   |   |   | .03 |   |
|                  |   |   |   |   |   |   |   |   |   |   |                    |   |   |   |   |   |
| March 31, 2010        |   |   | 8.65   |   |   |   | 8.26   |   |   |   | 8.55                    |   |   |   | .03 |   |
|                  |   |   |   |   |   |   |   |   |   |   |                    |   |   |   |   |   |
| December 31, 2009     |   | $      | 8.75   |   |   | $      | 8.40   |   |   | $      | 8.40                    |   |   | $ | .03 |   |
|                  |   |   |   |   |   |   |   |   |   |   |                    |   |   |   |   |   |
| September 30, 2009    |   |   | 8.89   |   |   |   | 8.50   |   |   |   | 8.50                    |   |   |   | .03 |   |
|                  |   |   |   |   |   |   |   |   |   |   |                    |   |   |   |   |   |
| June 30, 2009         |   |   | 8.65   |   |   |   | 7.50   |   |   |   | 8.53                    |   |   |   | .03 |   |
|                  |   |   |   |   |   |   |   |   |   |   |                    |   |   |   |   |   |
| March 31, 2009        |   |   | 8.05   |   |   |   | 7.25   |   |   |   | 7.93                    |   |   |   | .03 |   |

----

| Period        |   |   Total Numberof SharesPurchased(1) |    |   |    Average PricePaid per Share |   |    | Total Number ofShares Purchasedas Part of PubliclyAnnounced Plansor Programs |   |   | MaximumNumber of Sharesthat May Yet BePurchased Underthe Plans orPrograms(1) |   |
|---------------|--------|---------------------------------------------------------|---------|--------|--------------------------------------------------------------|--------|---------|----------------------------------------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------------------------------------|--------|
|          |   |                                                    |    |   |                                                         |   |    |                                                                                                                 |   |   |                                                                                                                 |   |
| October 2010  |   |                                                    | — |   |                                                         |   | — |                                                                                                                 |   |   | —                                                                                                              |   |   |   | 11,412 |   |
| November 2010 |   |                                                    | — |   |                                                         |   | — |                                                                                                                 |   |   | —                                                                                                              |   |   |   | 11,412 |   |
| December 2010 |   |                                                    | — |   |                                                         |   | — |                                                                                                                 |   |   | —                                                                                                              |   |   |   | 11,412 |   |
|          |   |                                                    |    |   |                                                         |   |    |                                                                                                                 |   |   |                                                                                                                 |   |   |   |   |   |
| Totals        |   |                                                    | — |   |                                                         |   | — |                                                                                                                 |   |   | —                                                                                                              |   |   |   | 11,412 |   |

----

----

|                                                |   | As of or For the Year Ended December 31,         |
|-----------------------------------------------------|--------|--------------------------------------------------|
|                                                |   | 2010                                             |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                                |   | (Dollars in thousands, except per share amounts) |   |
| Selected Financial Data                             |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                        |   | $                                                | 454,476 |   |   | $ | 464,216 |   |   | $ | 424,109 |   |   | $ | 424,467 |   |   | $ | 410,350 |   |
| Cash and cash equivalents                           |   |                                             | 61,891 |   |   |   | 74,936 |   |   |   | 28,308 |   |   |   | 42,079 |   |   |   | 48,283 |   |
| Loans receivable, net                               |   |                                             | 286,056 |   |   |   | 285,008 |   |   |   | 278,436 |   |   |   | 256,932 |   |   |   | 235,761 |   |
| Mortgage-backed securities                          |   |                                             | 16,146 |   |   |   | 23,355 |   |   |   | 31,921 |   |   |   | 35,632 |   |   |   | 43,636 |   |
| Investment securities                               |   |                                             | 61,428 |   |   |   | 52,336 |   |   |   | 62,070 |   |   |   | 67,861 |   |   |   | 59,305 |   |
| Other real estate owned                             |   |                                             | 2,675 |   |   |   | 2,968 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Deposits                                            |   |                                             | 384,595 |   |   |   | 375,254 |   |   |   | 327,267 |   |   |   | 327,772 |   |   |   | 330,083 |   |
| Borrowings  (1)                           |   |                                             | 7,384 |   |   |   | 35,090 |   |   |   | 41,632 |   |   |   | 40,058 |   |   |   | 40,891 |   |
| Stockholders’ equity                          |   |                                             | 48,991 |   |   |   | 48,445 |   |   |   | 48,899 |   |   |   | 51,458 |   |   |   | 33,500 |   |
| Total liabilities                                   |   |                                             | 405,485 |   |   |   | 415,772 |   |   |   | 375,211 |   |   |   | 373,008 |   |   |   | 376,850 |   |
| Allowance for loan losses                           |   |                                             | 5,090 |   |   |   | 3,538 |   |   |   | 3,169 |   |   |   | 2,831 |   |   |   | 2,719 |   |
| Non-accrual loans                                   |   |                                             | 13,699 |   |   |   | 6,457 |   |   |   | 5,209 |   |   |   | 1,502 |   |   |   | 874 |   |
| Non-performing assets (2)                           |   |                                             | 18,966 |   |   |   | 10,805 |   |   |   | 6,996 |   |   |   | 2,097 |   |   |   | 1,559 |   |
|                                                |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selected Operating Data                             |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest and dividend income                        |   | $                                                | 19,797 |   |   | $ | 21,091 |   |   | $ | 22,542 |   |   | $ | 24,340 |   |   | $ | 21,752 |   |
| Interest expense                                    |   |                                             | 6,434 |   |   |   | 9,509 |   |   |   | 11,701 |   |   |   | 13,999 |   |   |   | 11,331 |   |
| Net interest income                                 |   |                                             | 13,363 |   |   |   | 11,582 |   |   |   | 10,841 |   |   |   | 10,341 |   |   |   | 10,421 |   |
| Provision for loan losses                           |   |                                             | 2,120 |   |   |   | 528 |   |   |   | 585 |   |   |   | 120 |   |   |   | 60 |   |
| Net interest income after provision for loan losses |   |                                             | 11,243 |   |   |   | 11,054 |   |   |   | 10,256 |   |   |   | 10,221 |   |   |   | 10,361 |   |
| Other income                                        |   |                                             | 1,084 |   |   |   | 1,164 |   |   |   | 241 |   |   |   | 484 |   |   |   | 1,452 |   |
| Other expenses                                      |   |                                             | 11,375 |   |   |   | 10,900 |   |   |   | 10,303 |   |   |   | 9,807 |   |   |   | 10,509 |   |
| Income before income tax benefit                    |   |                                             | 953 |   |   |   | 1,318 |   |   |   | 194 |   |   |   | 898 |   |   |   | 1,304 |   |
| Income tax benefit                                  |   |                                             | (128 | ) |   |   | (41 | ) |   |   | (411 | ) |   |   | (157 | ) |   |   | (67 | ) |
| Net income                                          |   | $                                                | 1,080 |   |   | $ | 1,359 |   |   | $ | 605 |   |   | $ | 1,055 |   |   | $ | 1,371 |   |
|                                                |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings per share (3)                        |   | $                                                | 0.16 |   |   | $ | 0.20 |   |   | $ | 0.09 |   |   | $ | 0.15 |   |   | $ | 0.19 |   |

----

|                                                                                            |   | As of or For the Year Ended December 31, |   |
|-------------------------------------------------------------------------------------------------|--------|------------------------------------------|--------|
|                                                                                            |   | 2010                                     |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| Selected Operating Ratios                                                                       |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average yield earned on interest-earning assets                                                 |   |                                     | 4.64   | % |   |   | 5.08 | % |   |   | 5.64 | % |   |   | 6.12 | % |   |   | 5.89 | % |
| Average rate paid on interest-bearing liabilities                                               |   |                                     | 1.66   |   |   |   | 2.57 |   |   |   | 3.32 |   |   |   | 4.03 |   |   |   | 3.39 |   |
| Average interest rate spread (4)                                                                |   |                                     | 2.98   |   |   |   | 2.51 |   |   |   | 2.32 |   |   |   | 2.09 |   |   |   | 2.50 |   |
| Net interest margin (4)                                                                         |   |                                     | 3.13   |   |   |   | 2.79 |   |   |   | 2.72 |   |   |   | 2.60 |   |   |   | 2.82 |   |
| Ratio of interest-earning assets to interest-bearing liabilities                                |   |                                     | 110.65 |   |   |   | 111.98 |   |   |   | 113.54 |   |   |   | 114.54 |   |   |   | 110.66 |   |
| Noninterest expense as a percent of average assets                                              |   |                                     | 2.50   |   |   |   | 2.47 |   |   |   | 2.44 |   |   |   | 2.33 |   |   |   | 2.69 |   |
| Return on average assets                                                                        |   |                                     | 0.24   |   |   |   | 0.30 |   |   |   | 0.14 |   |   |   | 0.25 |   |   |   | 0.35 |   |
| Return on average equity                                                                        |   |                                     | 2.21   |   |   |   | 2.97 |   |   |   | 1.21 |   |   |   | 2.18 |   |   |   | 4.05 |   |
| Dividend payout ratio                                                                           |   |                                     | 30.29  |   |   |   | 25.59 |   |   |   | 122.91 |   |   |   | 58.56 |   |   |   | 90.39 |   |
| Efficiency ratio (5)                                                                            |   |                                     | 78.74  |   |   |   | 85.52 |   |   |   | 92.97 |   |   |   | 90.60 |   |   |   | 88.51 |   |
| Ratio of average equity to average assets                                                       |   |                                     | 10.74  |   |   |   | 11.08 |   |   |   | 11.79 |   |   |   | 11.52 |   |   |   | 8.68 |   |
| Full-service offices at end of period                                                           |   |                                     | 9      |   |   |   | 9 |   |   |   | 9 |   |   |   | 9 |   |   |   | 9 |   |
|                                                                                            |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Asset Quality Ratios                                                                            |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-accrual loans as a percentage of total loans receivable                                     |   |                                     | 4.71   | % |   |   | 2.24 | % |   |   | 2.85 | % |   |   | 0.58 | % |   |   | 0.37 | % |
| Nonperforming loans and troubled debt restructurings as a percent of total loans receivable (2) |   |                                     | 5.59   |   |   |   | 2.71 |   |   |   | 2.48 |   |   |   | 0.81 |   |   |   | 0.65 |   |
| Nonperforming assets as a percent of total assets (2)                                           |   |                                     | 4.17   |   |   |   | 2.33 |   |   |   | 1.65 |   |   |   | 0.49 |   |   |   | 0.38 |   |
| Allowance for loan losses as a percent of total loans receivable                                |   |                                     | 1.75   |   |   |   | 1.23 |   |   |   | 1.13 |   |   |   | 1.09 |   |   |   | 1.14 |   |
| Allowance for loan losses as a percent of nonperforming loans and troubled debt restructurings  |   |                                     | 31.24  |   |   |   | 45.14 |   |   |   | 45.30 |   |   |   | 135.00 |   |   |   | 174.39 |   |
| Allowance for loan losses as a percent of Non-accrual loans                                     |   |                                     | 37.15  |   |   |   | 54.78 |   |   |   | 60.84 |   |   |   | 188.48 |   |   |   | 311.10 |   |
| Net charge-offs to average loans receivable outstanding during  the period            |   |                                     | 0.20   |   |   |   | 0.06 |   |   |   | 0.09 |   |   |   | 0.00 |   |   |   | 0.01 |   |
|                                                                                            |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank Capital Ratios                                                                             |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 risk-based capital ratio                                                                 |   |                                     | 16.13  | % |   |   | 15.97 | % |   |   | 16.33 | % |   |   | 16.35 | % |   |   | 14.05 | % |
| Total risk-based capital ratio                                                                  |   |                                     | 17.38  |   |   |   | 17.17 |   |   |   | 17.47 |   |   |   | 17.38 |   |   |   | 15.12 |   |
| Tier 1 leverage capital ratio                                                                   |   |                                     | 10.83  |   |   |   | 10.17 |   |   |   | 10.67 |   |   |   | 10.52 |   |   |   | 8.98 |   |

----

| (1) | Borrowings consist of Federal Home Loan Bank (“FHLB”) advances, demand notes issued to the U.S. Treasury, customer sweep accounts, and, the Employee Stock Ownership Plan (“ESOP”) debt prior to conversion. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Nonperforming assets consist of nonperforming loans, certain troubled debt restructurings and other real estate owned (“OREO”).  Nonperforming loans consist of nonaccrual loans and accruing loans 90 days or more overdue, while OREO consists of real estate acquired through, or in lieu of, foreclosure. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The calculation of earnings per share for 2006 has been adjusted for the exchange and additional share issuance in the reorganization and offering completed on January 30, 2007.  However, earnings per share amounts have not been adjusted for the “second-step” conversion and reorganization, which was completed on January 18, 2011 and each share of Alliance Bancorp common stock (the former federally chartered mid-tier holding company of the Bank), was exchanged for 0.8200 shares of common stock of Alliance Bancorp, Inc. of Pennsylvania, the new Pennsylvania holding company. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities, and net interest margin represents net interest income as a percentage of average interest-earning assets. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | The efficiency ratio is calculated by dividing other expenses by the sum of net interest income and other income. |
|-----|-------------------------------------------------------------------------------------------------------------------|

----

----

|   | · | Low Market Rates of Interest. In recent periods, our results have benefitted from the historically low market rates of interest that have prevailed. During 2008, the Federal Reserve Board reduced the federal funds rate seven times from 4.25% at December 31, 2007 to a range of 0% to 0.25% at December 31, 2008 and throughout 2009. The average rates that we pay on our interest-bearing deposits and other liabilities have fallen steadily, from 4.03% for the year ended December 31, 2007 to 1.51% during the year ended December 31, 2010. Because the average rates on our deposits and other liabilities tend to adjust to changes in market rates of interest more quickly than the average yields we earn on our loans and other interest-earning assets, our average interest rate spread (the difference between the average yield earned oninterest-earning assets and the average cost paid on interest-bearing liabilities) has steadily increased over this period, as has our net interest income. We anticipate that the current low rate environment will continue to put downward pressure on short term interest rates until an economic recovery is sustainable. However, when the interest rate environment begins to increase, it will cause pricing pressure on our deposit accounts and may have a negative impact on our net income. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Increased Provisions for Loan Losses. In recent periods, our results have been adversely affected by provisions for loan losses, which are charged to expense, which have been higher than our average historical levels. For the year ended December 31, 2010 and December 31, 2009 our provisions for loan losses amounted to $2.1 million and $528,000, respectively. The increases in our provisions for loan losses reflect, among other factors, an increase in the amount of our non-performing loans, which totaled $16.3 million or 5.59% of our total loan portfolio at December 31, 2010 compared to $7.8 million or 2.71% of the total loan portfolio at December 31, 2009. The increase in our non-performing loans reflects the pressures imbedded in the national and local economies as a result of the continuing recession. Our results in future periodsmay be significantly affected by, among other factors, additional provisions for loan losses or to recognize losses on other non-performing assets. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Managing Other Expenses. Our other, or non-interest, expenses amounted to $11.4 million and $10.9 million for the years ended December 31, 2010, and 2009, respectively. The primary reasons for the increase in non-interest expenses in 2010 were increased professional fees, occupancy and equipment expenses, loan and OREO expenses, and increased salary and employee benefits expenses.  We expect an additional increase in salaries and benefits expenses after the conversion and offering as a result of the proposed stock purchase by our employee stock ownership plan as well as the new stock benefit plans that we intend to implement. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|                                                        |   | Year Ended December 31, |    |
|------------------------------------------------------------------|--------|-------------------------|---------|
|                                                             |   | 2010                    |    |   | 2009 |   |   | 2008 |   |
|                                                             |   | Average                 |    |   |   |   |   | Yield/ |   |   | Average |   |   |   |   |   | Yield/ |   |   | Average |   |   |   |   |   | Yield/ |   |
|                                                             |   | Balance                 |    |   | Interest |   |   | Rate |   |   | Balance |   |   | Interest |   |   | Rate |   |   | Balance |   |   | Interest |   |   | Rate |   |
| (Dollars in Thousands)                                           |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning assets:                                         |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans receivable (1)(3)                                          |   | $                       | 288,192 |   |   | $ | 16,878 |   |   |   | 5.86 | % |   | $ | 283,736 |   |   | $ | 17,024 |   |   |   | 6.00 | % |   | $ | 271,859 |   |   | $ | 17,485 |   |   |   | 6.43 | % |
| Mortgage-backed securities                                       |   |                    | 19,897  |   |   |   | 822 |   |   |   | 4.13 |   |   |   | 28,897 |   |   |   | 1,230 |   |   |   | 4.26 |   |   |   | 32,531 |   |   |   | 1,494 |   |   |   | 4.59 |   |
| Investment securities (3)                                        |   |                    | 51,924  |   |   |   | 1,863 |   |   |   | 3.59 |   |   |   | 58,383 |   |   |   | 2,638 |   |   |   | 4.52 |   |   |   | 59,568 |   |   |   | 2,851 |   |   |   | 4.79 |   |
| Other interest-earning assets                                    |   |                    | 66,920  |   |   |   | 234 |   |   |   | 0.35 |   |   |   | 44,065 |   |   |   | 199 |   |   |   | 0.45 |   |   |   | 36,021 |   |   |   | 712 |   |   |   | 1.98 |   |
| Total interest-earning assets                                    |   |                    | 426,933 |   |   |   | 19,797 |   |   |   | 4.64 |   |   |   | 415,081 |   |   |   | 21,091 |   |   |   | 5.08 |   |   |   | 399,979 |   |   |   | 22,542 |   |   |   | 5.64 |   |
| Noninterest-earning assets                                       |   |                    | 28,006  |   |   |   |   |   |   |   |   |   |   |   | 25,774 |   |   |   |   |   |   |   |   |   |   |   | 23,028 |   |   |   |   |   |   |   |   |   |
| Total assets                                                     |   | $                       | 454,939 |   |   |   |   |   |   |   |   |   |   | $ | 440,855 |   |   |   |   |   |   |   |   |   |   | $ | 423,007 |   |   |   |   |   |   |   |   |   |
|                                                             |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                    |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                         |   | $                       | 368,762 |   |   |   | 5,567 |   |   |   | 1.51 |   |   | $ | 332,795 |   |   |   | 7,257 |   |   |   | 2.18 |   |   | $ | 310,112 |   |   |   | 9,267 |   |   |   | 2.99 |   |
| FHLB advances and other borrowings                               |   |                    | 17,096  |   |   |   | 867 |   |   |   | 5.07 |   |   |   | 37,880 |   |   |   | 2,252 |   |   |   | 5.95 |   |   |   | 42,249 |   |   |   | 2,434 |   |   |   | 5.76 |   |
| Total interest-bearing liabilities                               |   |                    | 385,858 |   |   |   | 6,434 |   |   |   | 1.66 |   |   |   | 370,675 |   |   |   | 9,509 |   |   |   | 2.57 |   |   |   | 352,272 |   |   |   | 11,701 |   |   |   | 3.32 |   |
| Noninterest-bearing liabilities                                  |   |                    | 20,224  |   |   |   |   |   |   |   |   |   |   |   | 21,331 |   |   |   |   |   |   |   |   |   |   |   | 20,883 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                |   |                    | 406,082 |   |   |   |   |   |   |   |   |   |   |   | 392,006 |   |   |   |   |   |   |   |   |   |   |   | 373,155 |   |   |   |   |   |   |   |   |   |
| Stockholders’ equity                                       |   |                    | 48,857  |   |   |   |   |   |   |   |   |   |   |   | 48,849 |   |   |   |   |   |   |   |   |   |   |   | 49,852 |   |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders’ equity                 |   | $                       | 454,939 |   |   |   |   |   |   |   |   |   |   | $ | 440,885 |   |   |   |   |   |   |   |   |   |   | $ | 423,007 |   |   |   |   |   |   |   |   |   |
|                                                             |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest-earning assets                                      |   | $                       | 41,075  |   |   |   |   |   |   |   |   |   |   | $ | 44,406 |   |   |   |   |   |   |   |   |   |   | $ | 47,707 |   |   |   |   |   |   |   |   |   |
| Net interest income/interest rate spread                         |   |                    |    |   |   | $ | 13,363 |   |   |   | 2.98 | % |   |   |   |   |   | $ | 11,582 |   |   |   | 2.51 | % |   |   |   |   |   | $ | 10,841 |   |   |   | 2.32 | % |
| Net yield on interest-earning assets (2) (3)                     |   |                    |    |   |   |   |   |   |   |   | 3.13 | % |   |   |   |   |   |   |   |   |   |   | 2.79 | % |   |   |   |   |   |   |   |   |   |   | 2.71 | % |
| Ratio of interest-earning assets to interest-bearing liabilities |   |                    |    |   |   |   |   |   |   |   | 110.65 | % |   |   |   |   |   |   |   |   |   |   | 111.98 | % |   |   |   |   |   |   |   |   |   |   | 113.54 | % |

----

| (1) | Nonaccrual loans and loan fees have been included. |
|-----|----------------------------------------------------|

| (2) | Net interest income divided by interest-earning assets. |
|-----|---------------------------------------------------------|

| (3) | The indicated yields are not reflected on a tax equivalent basis. |
|-----|-------------------------------------------------------------------|

----

|                               |   | Year Ended December 31, |   |
|------------------------------------|--------|-------------------------|--------|
|                               |   | 2010 vs. 2009           |   |
|                               |   | Increase                |   |
|                               |   | (Decrease) Due To       |   |
|                               |   |                    |   |   |   |   |   | Total |   |
|                               |   |                    |   |   |   |   |   | Increase |   |
| (Dollars in Thousands)             |   | Rate                    |   |   | Volume |   |   | (Decrease) |   |
|                               |   |                    |   |   |   |   |   |   |   |
| Interest-earning assets:           |   |                    |   |   |   |   |   |   |   |
| Loans receivable                   |   | $                       | (395   | ) |   | $ | 249 |   |   | $ | (146 | ) |
| Mortgage-backed securities         |   |                    | (26    | ) |   |   | (382 | ) |   |   | (408 | ) |
| Investment securities              |   |                    | (522   | ) |   |   | (253 | ) |   |   | (775 | ) |
| Other interest-earning assets      |   |                    | (86    | ) |   |   | 121 |   |   |   | 35 |   |
| Total interest-earning assets      |   |                    | (1,029 | ) |   |   | (265 | ) |   |   | (1,294 | ) |
| Interest-bearing liabilities:      |   |                    |   |   |   |   |   |   |   |   |   |   |
| Deposits                           |   |                    | (2,102 | ) |   |   | 412 |   |   |   | (1,690 | ) |
| FHLB advances and other borrowings |   |                    | (188   | ) |   |   | (1,197 | ) |   |   | (1,385 | ) |
| Total interest-bearing liabilities |   |                    | (2,290 | ) |   |   | (785 | ) |   |   | (3,075 | ) |
|                               |   |                    |   |   |   |   |   |   |   |   |   |   |
| Increase in net interest income    |   | $                       | 1,261  |   |   | $ | 520 |   |   | $ | 1,781 |   |

----

----

| Total stockholder’s equity or GAAP capital (Bank) |   | $             | 47,543  |   |
|---------------------------------------------------------|--------|---------------|---------|--------|
| FDIC adjustment for securities available-for-sale       |   |          | (401    | )      |
| FDIC adjustment for retirement plans                    |   |          | 857     |   |
| FDIC tier 1 capital                                     |   |          | 47,999  |   |
| Plus: FDIC tier 2 capital (1)                           |   |          | 3,737   |   |
| Total FDIC risk-based capital                           |   | $             | 51,736  |   |
|                                                    |   |          |    |   |
| FDIC quarterly average total assets for leverage ratio  |   | $             | 443,291 |   |
| FDIC net risk-weighted assets                           |   |          | 297,598 |   |
|                                                    |   |          |    |   |
| FDIC leverage capital ratio                             |   |          | 10.83   | %      |
| Minimum requirement (2)                                 |   | 4.00% to 5.00 | %  |
|                                                    |   |          |    |   |
| FDIC risk-based capital - tier 1                        |   |          | 16.13   | %      |
| Minimum requirement                                     |   |          | 4.00    | %      |
|                                                    |   |          |    |   |
| FDIC total risk-based capital (tier 1 & 2)          |   |          | 17.38   | %      |
| Minimum requirement                                     |   |          | 8.00    | %      |

----

| (1) | Tier 2 capital consists entirely of the allowable portion of the allowance for loan losses, which is limited to 1.25% of total risk-weighted assets as detailed under regulations of the FDIC. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The FDIC has indicated that most highly rated institutions which meet certain criteria will be required to maintain a ratio of 3%, and all other institutions will be required to maintain an additional cushion of 100 to 200 basis points.    As of December 31, 2010, the Bank had not been advised of any additional requirements in this regard. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                          |   | Payments Due by Period |    |
|-------------------------------|--------|------------------------|---------|
|                          |   | Less Than              |    |   | One to |   |   | Three to |   |   | More Then |   |   |   |   |
|                          |   | One Year               |    |   | Three Years |   |   | Five Years |   |   | Five Years |   |   | Total |   |
|                          |   | (Dollars in thousands) |    |
|                          |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Borrowings              |   | $                      | 7,384   |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |   | $ | 7,384 |   |
| Certificates of deposit       |   |                   | 192,888 |   |   |   | 56,085 |   |   |   | 3,641 |   |   |   | 2,070 |   |   |   | 254,684 |   |
| Operating lease obligations   |   |                   | 410     |   |   |   | 662 |   |   |   | 626 |   |   |   | 743 |   |   |   | 2,441 |   |
| Total contractual obligations |   | $                      | 200,682 |   |   | $ | 56,747 |   |   | $ | 4,267 |   |   | $ | 2,813 |   |   | $ | 264,509 |   |

----

|                                    |   | At December 31,   |      |
|-----------------------------------------|--------|------------------------|-----------|
|                                    |   | 2010                   |      |   | 2009 |   |
|                                    |   | (Dollars in thousands) |      |
|                                    |   |                   |      |   |   |   |
| Commitments to extend credit:(1)        |   |                   |      |   |   |   |
| Future loan commitments                 |   | $                      | 8,416     |   |   | $ | 7,838 |   |
| Undisbursed construction loans          |   |                   | 5,853     |   |   |   | 10,745 |   |
| Undisbursed home equity lines of credit |   |                   | 5,128     |   |   |   | 6,380 |   |
| Undisbursed commercial lines of credit  |   |                   | 11,904    |   |   |   | 11,759 |   |
| Overdraft protection lines              |   |                   | 249       |   |   |   | 245 |   |
| Standby letters of credit               |   |                   |  829 |   |   |   |  1,420 |   |
| Total Commitments                       |   | $                      | 32,379    |   |   | $ | 38,387 |   |

| (1) | Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments may require payment of a fee and generally have fixed expiration dates or other termination clauses. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                      |   | 1 Yearor Less     |     |   | Over1 Yearto 3Years |   |     | Over 3Yearsto 5Years |   |   | Over 5Yearsto 15Years |   |   |   Over 15Years |    |   |    Total |   |
|------------------------------------------------|--------|------------------------|----------|--------|--------------------------|--------|----------|----------------------|--------|--------|-----------------------|--------|--------|--------------------------|---------|--------|-------------------------|--------|
|                                           |   | (Dollars in thousands) |     |
| Interest-earning assets                        |   |                   |     |   |                     |   |     |                 |   |   |                  |   |   |                     |    |   |                    |   |
| Loans receivable(1)                            |   | $                      | 49,313   |   |                     | $      | 59,562   |                 |   | $      | 68,980                |   |   | $                        | 83,804  |   |                    | $      | 15,788 |   |   | $ | 277,447 |   |
| Mortgage-backed securities(2)                  |   |                   | 2,613    |   |                     |   | 77       |                 |   |   | 2,973                 |   |   |                     | 7,902   |   |                    |   | 2,581 |   |   |   | 16,146 |   |
| Investment securities(3)                       |   |                   | 17,895   |   |                     |   | 14,835   |                 |   |   | 2,986                 |   |   |                     | 16,205  |   |                    |   | 9,507 |   |   |   | 61,428 |   |
| Other interest-earning assets                  |   |                   | 51,447   |   |                     |   | —  |                 |   |   | —               |   |   |                     | — |   |                    |   | — |   |   |   | 51,447 |   |
| Total interest-earning assets                  |   |                   | 121,268  |   |                     |   | 74,474   |                 |   |   | 74,939                |   |   |                     | 107,911 |   |                    |   | 27,876 |   |   |   | 404,468 |   |
| Interest-bearing liabilities                   |   |                   |     |   |                     |   |     |                 |   |   |                  |   |   |                     |    |   |                    |   |   |   |   |   |   |   |
| Savings accounts(4)                            |   |                   | 8,569    |   |                     |   | 8,569    |                 |   |   | 8,569                 |   |   |                     | 8,569   |   |                    |   | 8,571 |   |   |   | 42,847 |   |
| NOW accounts                                   |   |                   | 50,410   |   |                     |   | —  |                 |   |   | —               |   |   |                     | — |   |                    |   | — |   |   |   | 50,410 |   |
| Money market deposit accounts                  |   |                   | 24,458   |   |                     |   | —  |                 |   |   | —               |   |   |                     | — |   |                    |   | — |   |   |   | 24,458 |   |
| Certificate accounts                           |   |                   | 192,888  |   |                     |   | 56,085   |                 |   |   | 3,641                 |   |   |                     | 2,070   |   |                    |   | — |   |   |   | 254,684 |   |
| Borrowed money                                 |   |                   | 7,384    |   |                     |   | —  |                 |   |   | —               |   |   |                     | — |   |                    |   | — |   |   |   | 7,384 |   |
| Total interest-bearing liabilities             |   |                   | 283,709  |   |                     |   | 64,654   |                 |   |   | 12,120                |   |   |                     | 10,639  |   |                    |   | 8,571 |   |   |   | 379,783 |   |
| Repricing GAP during the period                |   |                   | (162,441 | )      |                     |   | 9,820    |                 |   |   | 62,729                |   |   |                     | 97,272  |   |                    |   | 19,305 |   |   |   | 26,685 |   |
| Cumulative GAP                                 |   | $                      | (162,441 | )      |                     | $      | (152,621 | )                    |   | $      | (89,892               | )      |   | $                        | 7,380   |   |                    | $      | 26,685 |   |   |   |   |   |
| Ratio of GAP during the period to total assets |   |                   | (35.7    | )%     |                     |   | 2.2      | %                    |   |   | 13.8                  | %      |   |                     | 21.4    | %      |                    |   | 4.3 | % |   |   |   |   |
| Ratio of cumulative GAP to total assets        |   |                   | (35.7    | )%     |                     |   | (33.6    | )%                   |   |   | (19.8                 | )%     |   |                     | 1.6     | %      |                    |   | 5.9 | % |   |   |   |   |

----

| (1) | Adjustable-rate loans are included in the period in which interest rates are next scheduled to adjust rather than in the period in which they are contractually due to mature. Fixed-rate loans are included in the period in which they are contractually due to mature. Balances have been reduced by $13.7 million for nonaccrual loans at December 31, 2010. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Reflects the repricing of the underlying loans and/or the expected average life of the mortgage-backed security. |
|-----|------------------------------------------------------------------------------------------------------------------|

| (3) | Reflects repricing or contractual maturity with respect to investment securities. |
|-----|-----------------------------------------------------------------------------------|

| (4) | For savings accounts, which totaled $42.8 million at December 31, 2010, assumes a decay rate of 20% per period. |
|-----|----------------------------------------------------------------------------------------------------------------------|

----

|                                      |   | As of December 31, 2010 |   |
|-------------------------------------------|--------|-------------------------|--------|
| Change in InterestRates (Basis Points)(1) |   |  Amount            |   |   | Dollar Changefrom Base |   |   | PercentageChange fromBase |   |
|                                      |   | (Dollars in thousands)  |   |
|                                      |   |                    |   |   |   |   |   |   |   |
| +300                                      |   | $                       | 50,644 |   |   | $ | (5,102 | ) |   |   | (9.2 | )% |
| +200                                      |   |                    | 52,453 |   |   |   | (3,293 | ) |   |   | (5.9 | ) |
| +100                                      |   |                    | 54,359 |   |   |   | (1,387 | ) |   |   | (2.5 | ) |
| 0                                         |   |                    | 55,746 |   |   |   | — |   |   |   | — |   |
| -100                                      |   |                    | 51,691 |   |   |   | (4,055 | ) |   |   | (7.3 | ) |
| -200                                      |   |                    | 47,857 |   |   |   | (7,889 | ) |   |   | (14.2 | ) |

----

| (1) | Assumes an instantaneous uniform change in interest rates. One basis point equals 0.01%. |
|-----|------------------------------------------------------------------------------------------|

| Change in Interest Rates inBasis Points (Rate Shock) |   | Net Interest Income    |   |   | $ Change |   |    | % Change |   |
|------------------------------------------------------|--------|------------------------|--------|--------|----------|--------|---------|----------|--------|
|                                                 |   | (Dollars in thousands) |   |
|                                                 |   |                   |   |   |     |   |    |     |   |
| 300                                                  |   | $                      | 15,107 |   |     | $      | 176     |     |   |   | 1.2 | % |
| 200                                                  |   |                   | 15,101 |   |     |   | 170     |     |   |   | 1.1 |   |
| 100                                                  |   |                   | 15,064 |   |     |   | 133     |     |   |   | 0.9 |   |
| Static                                               |   |                   | 14,931 |   |     |   | — |     |   |   | — |   |
| (100)                                                |   |                   | 14,940 |   |     |   | 9       |     |   |   | 0.1 |   |
| (200)                                                |   |                   | 14,902 |   |     |   | (29     | )        |   |   | (0.2 | ) |

----

----

----

|                                                                                                                                     |   | December 31, |        |
|------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|-------------|
|                                                                                                                                     |   | 2010         |        |   | 2009 |   |
| Assets                                                                                                                                   |   |         |        |   |   |   |
|                                                                                                                                     |   |         |        |   |   |   |
| Cash and cash due from depository institutions                                                                                           |   | $            | 10,443,453  |   |   | $ | 5,710,340 |   |
| Interest bearing deposits with depository institutions                                                                                   |   |         | 51,447,335  |   |   |   | 69,225,763 |   |
| Total cash and cash equivalents                                                                                                          |   |         | 61,890,788  |   |   |   | 74,936,103 |   |
|                                                                                                                                     |   |         |        |   |   |   |   |   |
| Investment securities available for sale                                                                                                 |   |         | 36,783,820  |   |   |   | 28,889,850 |   |
| Mortgage-backed securities available for sale                                                                                            |   |         | 16,145,873  |   |   |   | 23,355,025 |   |
| Investment securities held to maturity (fair value - 2010, $24,519,359; 2009, $23,796,424)                                               |   |         | 24,644,348  |   |   |   | 23,445,803 |   |
| Loans receivable - net of allowance for loan losses - 2010, $5,089,617; 2009, $3,537,736                                                 |   |         | 286,056,043 |   |   |   | 285,007,578 |   |
| Accrued interest receivable                                                                                                              |   |         | 1,841,225   |   |   |   | 2,045,466 |   |
| Premises and equipment - net                                                                                                             |   |         | 2,546,691   |   |   |   | 2,530,550 |   |
| Other real estate owned (OREO)                                                                                                           |   |         | 2,675,435   |   |   |   | 2,968,138 |   |
| Federal Home Loan Bank (FHLB) stock-at cost                                                                                              |   |         | 2,316,800   |   |   |   | 2,438,800 |   |
| Bank owned life insurance                                                                                                                |   |         | 11,520,986  |   |   |   | 11,185,302 |   |
| Deferred tax asset-net                                                                                                                   |   |         | 5,184,250   |   |   |   | 4,546,254 |   |
| Prepaid FDIC premium assessment                                                                                                          |   |         | 1,590,494   |   |   |   | 2,034,041 |   |
| Prepaid expenses and other assets                                                                                                        |   |         | 1,279,056   |   |   |   | 833,332 |   |
|                                                                                                                                     |   |         |        |   |   |   |   |   |
| Total Assets                                                                                                                             |   | $            | 454,475,809 |   |   | $ | 464,216,243 |   |
|                                                                                                                                     |   |         |        |   |   |   |   |   |
| Liabilities and Stockholders’ Equity                                                                                               |   |         |        |   |   |   |   |   |
|                                                                                                                                     |   |         |        |   |   |   |   |   |
| Liabilities                                                                                                                              |   |         |        |   |   |   |   |   |
| Non-interest bearing deposits                                                                                                            |   | $            | 12,195,934  |   |   | $ | 15,506,305 |   |
| Interest bearing deposits                                                                                                                |   |         | 372,398,885 |   |   |   | 359,747,938 |   |
| Total deposits                                                                                                                           |   |         | 384,594,819 |   |   |   | 375,254,243 |   |
|                                                                                                                                     |   |         |        |   |   |   |   |   |
| FHLB advances                                                                                                                            |   |         | —     |   |   |   | 32,000,000 |   |
| Other borrowings                                                                                                                         |   |         | 7,383,758   |   |   |   | 3,089,715 |   |
| Subscriptions payable                                                                                                                    |   |         | 7,908,463   |   |   |   | — |   |
| Accrued expenses and other liabilities                                                                                                   |   |         | 5,597,676   |   |   |   | 5,427,662 |   |
|                                                                                                                                     |   |         |        |   |   |   |   |   |
| Total liabilities                                                                                                                        |   |         | 405,484,716 |   |   |   | 415,771,620 |   |
|                                                                                                                                     |   |         |        |   |   |   |   |   |
| Commitments and Contingencies (Note 10)                                                                                                  |   |         |        |   |   |   |   |   |
|                                                                                                                                     |   |         |        |   |   |   |   |   |
| Stockholders’ Equity                                                                                                               |   |         |        |   |   |   |   |   |
| Common stock, $.01 par value; shares authorized -15,000,000: shares issued–7,225,000; outstanding-2010, 6,676,476; 2009, 6,729,676 |   |         | 72,250      |   |   |   | 72,250 |   |
| Additional paid-in capital                                                                                                               |   |         | 23,999,125  |   |   |   | 24,015,125 |   |
| Retained earnings - partially restricted                                                                                                 |   |         | 30,600,478  |   |   |   | 29,847,311 |   |
| Unearned shares held by Employee Stock Ownership Plan (ESOP)                                                                             |   |         | (481,789    | ) |   |   | (602,229 | ) |
| Accumulated other comprehensive loss                                                                                                     |   |         | (456,561    | ) |   |   | (582,743 | ) |
| Treasury stock, at cost: 2010, 548,524 shares; 2009, 495,324 shares                                                                      |   |         | (4,742,410  | ) |   |   | (4,305,091 | ) |
|                                                                                                                                     |   |         |        |   |   |   |   |   |
| Total stockholders’ equity                                                                                                         |   |         | 48,991,093  |   |   |   | 48,444,623 |   |
|                                                                                                                                     |   |         |        |   |   |   |   |   |
| Total Liabilities and Stockholders’ Equity                                                                                         |   | $            | 454,475,809 |   |   | $ | 464,216,243 |   |

----

|                                                          |   | Years Ended December 31, |       |
|---------------------------------------------------------------|--------|--------------------------|------------|
|                                                          |   | 2010                     |       |   | 2009 |   |
|                                                          |   |                     |       |   |   |   |
| Interest and Dividend Income                                  |   |                     |       |   |   |   |
| Loans, including fees                                         |   | $                        | 16,878,026 |   |   | $ | 17,023,648 |   |
| Mortgage-backed securities                                    |   |                     | 822,286    |   |   |   | 1,229,896 |   |
| Investment securities:                                        |   |                     |       |   |   |   |   |   |
| Taxable                                                       |   |                     | 816,844    |   |   |   | 1,467,183 |   |
| Tax – exempt                                            |   |                     | 1,045,654  |   |   |   | 1,170,945 |   |
| Balances due from depository institutions                     |   |                     | 233,965    |   |   |   | 199,192 |   |
| Total interest and dividend income                            |   |                     | 19,796,775 |   |   |   | 21,090,864 |   |
|                                                          |   |                     |       |   |   |   |   |   |
| Interest Expense                                              |   |                     |       |   |   |   |   |   |
| Deposits                                                      |   |                     | 5,566,811  |   |   |   | 7,256,713 |   |
| FHLB advances and other borrowings                            |   |                     | 867,318    |   |   |   | 2,252,592 |   |
| Total interest expense                                        |   |                     | 6,434,129  |   |   |   | 9,509,305 |   |
|                                                          |   |                     |       |   |   |   |   |   |
| Net Interest Income                                           |   |                     | 13,362,646 |   |   |   | 11,581,559 |   |
| Provision for Loan Losses                                     |   |                     | 2,120,000  |   |   |   | 528,215 |   |
| Net Interest Income After Provision for Loan Losses           |   |                     | 11,242,646 |   |   |   | 11,053,344 |   |
|                                                          |   |                     |       |   |   |   |   |   |
| Other Income                                                  |   |                     |       |   |   |   |   |   |
| Service charges on deposit accounts                           |   |                     | 283,770    |   |   |   | 292,720 |   |
| Management fees                                               |   |                     | 336,000    |   |   |   | 360,000 |   |
| Other fee income                                              |   |                     | 178,079    |   |   |   | 170,110 |   |
| Loss on sale of OREO, net                                     |   |                     | (49,875    | ) |   |   | (14,877 | ) |
| Increase in cash surrender value of bank owned life insurance |   |                     | 335,684    |   |   |   | 355,243 |   |
| Other                                                         |   |                     | 635        |   |   |   | 795 |   |
| Total other income                                            |   |                     | 1,084,293  |   |   |   | 1,163,991 |   |
|                                                          |   |                     |       |   |   |   |   |   |
| Other Expenses                                                |   |                     |       |   |   |   |   |   |
| Salaries and employee benefits                                |   |                     | 6,014,931  |   |   |   | 5,929,342 |   |
| Occupancy and equipment                                       |   |                     | 1,914,041  |   |   |   | 1,800,582 |   |
| FDIC deposit insurance premiums                               |   |                     | 637,841    |   |   |   | 756,151 |   |
| Advertising and marketing                                     |   |                     | 306,823    |   |   |   | 307,860 |   |
| Professional fees                                             |   |                     | 745,260    |   |   |   | 501,236 |   |
| Loan and OREO expense                                         |   |                     | 206,239    |   |   |   | 116,121 |   |
| Directors fees                                                |   |                     | 278,000    |   |   |   | 254,800 |   |
| Provision for loss on OREO                                    |   |                     | 157,303    |   |   |   | 106,753 |   |
| Other noninterest expense                                     |   |                     | 1,114,115  |   |   |   | 1,126,793 |   |
| Total other expenses                                          |   |                     | 11,374,553 |   |   |   | 10,899,638 |   |
|                                                          |   |                     |       |   |   |   |   |   |
| Income Before Income Tax Benefit                              |   |                     | 952,386    |   |   |   | 1,317,697 |   |
|                                                          |   |                     |       |   |   |   |   |   |
| Income Tax Benefit                                            |   |                     | (128,000   | ) |   |   | (41,000 | ) |
|                                                          |   |                     |       |   |   |   |   |   |
| Net Income                                                    |   | $                        | 1,080,386  |   |   | $ | 1,358,697 |   |
|                                                          |   |                     |       |   |   |   |   |   |
| Basic Earnings per Share                                      |   | $                        | 0.16       |   |   | $ | 0.20 |   |

----

|                                                                 |   | Common Stock |   |   | AdditionalPaid-inCapital |   |       | TreasuryStock |   |   | PartiallyRestrictedRetainedEarnings |   |   | Unearnedshares heldby ESOP |       |   | AccumulatedOtherComprehensiveLoss |   |     | TotalStockholders’Equity |   |   | ComprehensiveIncome |   |
|---------------------------------------------------------------------------|--------|-------------------|--------|--------|--------------------------|--------|------------|---------------|--------|--------|-------------------------------------|--------|--------|--------------------------------------|------------|--------|-----------------------------------|--------|----------|--------------------------------|--------|--------|---------------------|--------|
|                                                                      |   |              |   |   |                     |   |       |          |   |   |                                |   |   |                                 |       |   |                              |   |     |                           |   |   |                |   |
| Balance, January 1, 2009                                                  |   | $                 | 72,250 |   |                     | $      | 24,029,125 |          |   | $      | (2,385,979                          | )      |   | $                                    | 28,836,350 |   |                              | $      | (722,664 | )                              |   | $      | (930,044            | )      |   | $ | 48,899,038 |   |   |   |   |
|                                                                      |   |              |   |   |                     |   |       |          |   |   |                                |   |   |                                 |       |   |                              |   |     |                           |   |   |                |   |   |   |   |   |   |   |   |
| ESOP shares committed to be released                                      |   |              |   |   |                     |   | (14,000    | )             |   |   |                                |   |   |                                 |       |   |                              |   | 120,435  |                           |   |   |                |   |   |   | 106,435 |   |   |   |   |
| Net income                                                                |   |              |   |   |                     |   |       |          |   |   |                                |   |   |                                 | 1,358,697  |   |                              |   |     |                           |   |   |                |   |   |   | 1,358,697 |   |   | $ | 1,358,697 |   |
| Dividends declared ($0.12 per share)                                      |   |              |   |   |                     |   |       |          |   |   |                                |   |   |                                 | (347,736   | )      |                              |   |     |                           |   |   |                |   |   |   | (347,736 | ) |   |   |   |   |
| Acquisition of treasury stock (228,000 shares)                            |   |              |   |   |                     |   |       |          |   |   | (1,919,112                          | )      |   |                                 |       |   |                              |   |     |                           |   |   |                |   |   |   | (1,919,112 | ) |   |   |   |   |
| Change in liability for retirement plans, net of tax                      |   |              |   |   |                     |   |       |          |   |   |                                |   |   |                                 |       |   |                              |   |     |                           |   |   | 453,667             |   |   |   | 453,667 |   |   |   | 453,667 |   |
| Change in net unrealized gain on securities available for sale-net of tax |   |              |   |   |                     |   |       |          |   |   |                                |   |   |                                 |       |   |                              |   |     |                           |   |   | (106,366            | )      |   |   | (106,366 | ) |   |   | (106,366 | ) |
|                                                                      |   |              |   |   |                     |   |       |          |   |   |                                |   |   |                                 |       |   |                              |   |     |                           |   |   |                |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2009                                                |   | $                 | 72,250 |   |                     | $      | 24,015,125 |          |   | $      | (4,305,091                          | )      |   | $                                    | 29,847,311 |   |                              | $      | (602,229 | )                              |   | $      | (582,743            | )      |   | $ | 48,444,623 |   |   | $ | 1,705,998 |   |
|                                                                      |   |              |   |   |                     |   |       |          |   |   |                                |   |   |                                 |       |   |                              |   |     |                           |   |   |                |   |   |   |   |   |   |   |   |   |
| ESOP shares committed to be released                                      |   |              |   |   |                     |   | (16,000    | )             |   |   |                                |   |   |                                 |       |   |                              |   | 120,440  |                           |   |   |                |   |   |   | 104,440 |   |   |   |   |   |
| Net income                                                                |   |              |   |   |                     |   |       |          |   |   |                                |   |   |                                 | 1,080,386  |   |                              |   |     |                           |   |   |                |   |   |   | 1,080,386 |   |   | $ | 1,080,386 |   |
| Dividends declared ($0.12 per share)                                      |   |              |   |   |                     |   |       |          |   |   |                                |   |   |                                 | (327,219   | )      |                              |   |     |                           |   |   |                |   |   |   | (327,219 | ) |   |   |   |   |
| Acquisition of treasury stock (53,200 shares)                             |   |              |   |   |                     |   |       |          |   |   | (437,319                            | )      |   |                                 |       |   |                              |   |     |                           |   |   |                |   |   |   | (437,319 | ) |   |   |   |   |
| Change in liability for retirement plans, net of tax                      |   |              |   |   |                     |   |       |          |   |   |                                |   |   |                                 |       |   |                              |   |     |                           |   |   | 244,137             |   |   |   | 244,137 |   |   |   | 244,137 |   |
| Change in net unrealized gain on securities available for sale-net of tax |   |              |   |   |                     |   |       |          |   |   |                                |   |   |                                 |       |   |                              |   |     |                           |   |   | (117,955            | )      |   |   | (117,955 | ) |   |   | (117,955 | ) |
|                                                                      |   |              |   |   |                     |   |       |          |   |   |                                |   |   |                                 |       |   |                              |   |     |                           |   |   |                |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2010                                                |   | $                 | 72,250 |   |                     | $      | 23,999,125 |          |   | $      | (4,742,410                          | )      |   | $                                    | 30,600,478 |   |                              | $      | (481,789 | )                              |   | $      | (456,561            | )      |   | $ | 48,991,093 |   |   | $ | 1,206,568 |   |

----

| Alliance Bancorp, Inc. of Pennsylvania and Subsidiaries                                 |   |                     |        |   |   |   |
|-----------------------------------------------------------------------------------------|--------|--------------------------|-------------|--------|--------|--------|
| Consolidated Statements of Cash Flows                                                   |   |                     |        |   |   |   |
|                                                                                    |   | Years Ended December 31, |        |
|                                                                                    |   | 2010                     |        |   | 2009   |   |
| Operating Activities                                                                    |   |                     |        |   |   |   |
| Net income                                                                              |   | $                        | 1,080,386   |   |   | $      | 1,358,697 |   |
| Adjustments to reconcile net income to cash (used in) provided by operating activities: |   |                     |        |   |   |   |   |   |
| Provision for:                                                                          |   |                     |        |   |   |   |   |   |
| Loan losses                                                                             |   |                     | 2,120,000   |   |   |   | 528,215 |   |
| Depreciation and amortization                                                           |   |                     | 508,484     |   |   |   | 511,861 |   |
| OREO                                                                                    |   |                     | 157,303     |   |   |   | 106,753 |   |
| ESOP shares committed to be released                                                    |   |                     | 104,440     |   |   |   | 106,435 |   |
| Loss on sale of OREO                                                                    |   |                     | 49,875      |   |   |   | 14,877 |   |
| Deferred tax benefit                                                                    |   |                     | (703,000    | )      |   |   | (397,000 | ) |
| Changes in assets and liabilities which provided (used) cash:                           |   |                     |        |   |   |   |   |   |
| Accrued expenses and other liabilities                                                  |   |                     | 539,922     |   |   |   | (196,379 | ) |
| Prepaid expenses and other assets                                                       |   |                     | (2,177      | )      |   |   | (1,882,120 | ) |
| Increase in cash surrender value of bank owned life insurance                           |   |                     | (335,684    | )      |   |   | (355,243 | ) |
| Accrued interest receivable                                                             |   |                     | 204,241     |   |   |   | (17,387 | ) |
| Net cash provided by (used in) operating activities                                     |   |                     | 3,723,790   |   |   |   | (221,291 | ) |
|                                                                                    |   |                     |        |   |   |   |   |   |
| Investing Activities                                                                    |   |                     |        |   |   |   |   |   |
| Purchase of investment securities-available for sale                                    |   |                     | (45,000,000 | )      |   |   | (31,000,000 | ) |
| Purchase of investment securities-held to maturity                                      |   |                     | (3,140,000  | )      |   |   | (4,085,000 | ) |
| Loans originated and acquired                                                           |   |                     | (50,177,259 | )      |   |   | (65,627,266 | ) |
| Proceeds from maturities and calls of investment securities                             |   |                     | 38,945,432  |   |   |   | 44,347,929 |   |
| Proceeds from loans sold                                                                |   |                     | —     |   |   |   | 500,000 |   |
| Redemption of FHLB stock                                                                |   |                     | 122,000     |   |   |   | — |   |
| Principal repayments of:                                                                |   |                     |        |   |   |   |   |   |
| Loans                                                                                   |   |                     | 46,339,794  |   |   |   | 54,264,173 |   |
| Mortgage-backed securities                                                              |   |                     | 7,132,484   |   |   |   | 8,875,977 |   |
| Purchase of premises and equipment                                                      |   |                     | (524,625    | )      |   |   | (278,058 | ) |
| Investment in OREO                                                                      |   |                     | (192,583    | )      |   |   | (33,734 | ) |
| Proceeds from sale of OREO                                                              |   |                     | 947,108     |   |   |   | 707,819 |   |
| Net cash (used in) provided by investing activities                                     |   |                     | (5,547,649  | )      |   |   | 7,671,840 |   |
|                                                                                    |   |                     |        |   |   |   |   |   |
| Financing Activities                                                                    |   |                     |        |   |   |   |   |   |
| Dividends paid                                                                          |   |                     | (327,219    | )      |   |   | (347,736 | ) |
| Increase in deposits                                                                    |   |                     | 9,340,576   |   |   |   | 46,622,021 |   |
| Subscriptions payable                                                                   |   |                     | 7,908,463   |   |   |   | — |   |
| Purchase of treasury stock                                                              |   |                     | (437,319    | )      |   |   | (1,919,112 | ) |
| Increase (decrease) in other borrowings                                                 |   |                     | 4,294,043   |   |   |   | (177,275 | ) |
| Repayments of FHLB advances                                                             |   |                     | (32,000,000 | )      |   |   | (5,000,000 | ) |
| Net cash (used in) provided by financing activities                                     |   |                     | (11,221,456 | )      |   |   | 39,177,898 |   |
|                                                                                    |   |                     |        |   |   |   |   |   |
| (Decrease) increase in Cash and Cash Equivalents                                        |   |                     | (13,045,315 | )      |   |   | 46,628,447 |   |
| Cash and Cash Equivalents, Beginning of Year                                            |   |                     | 74,936,103  |   |   |   | 28,307,656 |   |
| Cash and Cash Equivalents, End of Year                                                  |   | $                        | 61,890,788  |   |   | $      | 74,936,103 |   |
|                                                                                    |   |                     |        |   |   |   |   |   |
| Supplemental Disclosures of Cash Flow Information-                                      |   |                     |        |   |   |   |   |   |
| Cash paid during the period for:                                                        |   |                     |        |   |   |   |   |   |
| Interest                                                                                |   | $                        | 6,606,129   |   |   | $      | 9,537,066 |   |
| Income taxes                                                                            |   | $                        | 450,000     |   |   | $      | 300,000 |   |
|                                                                                    |   |                     |        |   |   |   |   |   |
| Supplemental Disclosure of Noncash Investing Activity-                                  |   |                     |        |   |   |   |   |   |
| Other real estate acquired in settlement of loans                                       |   | $                        | 669,000     |   |   | $      | 3,763,854 |   |

----

----

| · | Securities Held to Maturity - Securities held to maturity are stated at cost, adjusted for unamortized purchase premiums and discounts, based on the positive intent and the ability to hold these securities to maturity considering all reasonably foreseeable conditions and events. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Securities Available for Sale - Securities available for sale, carried at fair value, are those securities management might sell in response to changes in market interest rates, increases in loan demand, changes in liquidity needs and other conditions.  Unrealized gains and losses, net of tax, are reported as a net amount in other comprehensive income (loss) until realized. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                |   | December 31, 2010   |          |
|-------------------------------------|--------|---------------------|---------------|
|                                |   | Less than 12 Months |          |   | 12 Months or Longer |   |   | Total |   |
|                                |   | FairValue           |          |   | GrossUnrealizedLosses |   |   | FairValue |   |   | GrossUnrealizedLosses |   |   | FairValue |   |   | GrossUnrealizedLosses |   |
|                                |   | (In Thousands)      |          |
| Securities Available for Sale       |   |                |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government obligations         |   | $                   | 20,669        |   |   | $ | 301 |   |   | $ | — |   |   | $ | — |   |   | $ | 20,669 |   |   | $ | 301 |   |
| Mortgage-backed securities          |   |                |  — |   |   |   | — |   |   |   | 133 |   |   |   | 16 |   |   |   | 133 |   |   |   | 16 |   |
|                                |   |                |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total securities available for sale |   | $                   | 20,669        |   |   | $ | 301 |   |   | $ | 133 |   |   | $ |  16 |   |   | $ | 20,802 |   |   | $ | 317 |   |
|                                |   |                |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities Held to Maturity         |   |                |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Municipal obligations               |   | $                   | 9,434         |   |   | $ | 366 |   |   | $ | 422 |   |   | $ |  6 |   |   | $ | 9,856 |   |   | $ | 372 |   |

|                                |   | December 31, 2009        |          |
|-------------------------------------|--------|------------------------------------|---------------|
|                                |   | Less than 12 Months |          |   | 12 Months or Longer |   |   | Total |   |
|                                |   | FairValue                          |          |   | GrossUnrealizedLosses |   |   | Fair Value |   |   | GrossUnrealizedLosses |   |   | FairValue |   |   | GrossUnrealizedLosses |   |
|                                |   | (In Thousands)                     |          |
| Securities Available for Sale       |   |                               |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government obligations         |   | $                                  | 19,784        |   |   | $ | 215 |   |   | $ | — |   |   | $ | — |   |   | $ | 19,784 |   |   | $ | 215 |   |
| Mortgage-backed securities          |   |                               |  — |   |   |   | — |   |   |   | 669 |   |   |   | 15 |   |   |   | 699 |   |   |   | 15 |   |
|                                |   |                               |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total securities available for sale |   | $                                  | 19,784        |   |   | $ | 215 |   |   | $ | 699 |   |   | $ | 15 |   |   | $ | 20,483 |   |   | $ | 230 |   |
|                                |   |                               |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities Held to Maturity         |   | $                                  | 2,060         |   |   | $ | 20 |   |   | $ | 3,904 |   |   | $ | 141 |   |   | $ | 5,964 |   |   | $ | 161 |   |

----

| (Dollars in thousands) |   | 30-59Days Past Due |    |   | 60-89 Days PastDue |   |    | 90 or More Days |   |   | Total Past Due |   |   | Current |    |   | Total LoansReceivable |   |    | LoansReceivableGreater Than90 Days PastDue andAccruing |   |
|----------------------------------|--------|------------------------------|---------|--------|------------------------------|--------|---------|--------------------------------|--------|--------|--------------------------|--------|--------|---------|---------|--------|----------------------------|--------|---------|----------------------------------------------------------------------------|--------|
| Real estate:                     |   |                         |    |   |                         |   |    |                           |   |   |                     |   |   |    |    |   |                       |   |    |                                                                       |   |
| Single-family                    |   | $                            | 1,772   |   |                         | $      | 582     |                           |   | $      | 2,382                    |   |   | $       | 4,736   |   |                       | $      | 110,249 |                                                                       |   | $ | 114,985 |   |   | $ | 2,308 |   |
| Multi-family                     |   |                         | — |   |                         |   | — |                           |   |   | —                  |   |   |    | — |   |                       |   | 6,293   |                                                                       |   |   | 6,293 |   |   |   | — |   |
| Commercial                       |   |                         | 2,134   |   |                         |   | 1,115   |                           |   |   | 2,128                    |   |   |    | 5,377   |   |                       |   | 126,132 |                                                                       |   |   | 131,509 |   |   |   | — |   |
| Land and construction            |   |                         | — |   |                         |   | — |                           |   |   | 1,720                    |   |   |    | 1,720   |   |                       |   | 22,037  |                                                                       |   |   | 23,757 |   |   |   | — |   |
| Commercial business              |   |                         | — |   |                         |   | — |                           |   |   | 74                       |   |   |    | 74      |   |                       |   | 7,748   |                                                                       |   |   | 7,822 |   |   |   | — |   |
| Consumer                         |   |                         | 251     |   |                         |   | 105     |                           |   |   | 284                      |   |   |    | 640     |   |                       |   | 6,512   |                                                                       |   |   | 7,152 |   |   |   | 284 |   |
| Total                            |   | $                            | 4,157   |   |                         | $      | 1,802   |                           |   | $      | 6,588                    |   |   | $       | 12,547  |   |                       | $      | 278,971 |                                                                       |   | $ | 291,518 |   |   | $ | 2,592 |   |

----

|                     |   | 2010   |    |
|--------------------------|--------|--------|---------|
| (Dollars in thousands)   |   |   |    |
|                     |   |   |    |
| Real estate:             |   |   |    |
| Single-family            |   | $      | 74      |   |
| Multi-family             |   |   | — |   |
| Commercial               |   |   | 2,128   |   |
| Land and construction    |   |   | 11,423  |   |
| Commercial business      |   |   | 74      |   |
| Consumer                 |   |   | — |   |
| Total non-accruing loans |   | $      | 13,699  |   |

| 1. | Lending policies and procedures, including underwriting standards and collection, charge-off, and recovery practices. |
|----|-----------------------------------------------------------------------------------------------------------------------|

| 2. | National, regional, and local economic and business conditions as well as the condition of various market segments, including the value of underlying collateral for collateral dependent loans. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Nature and volume of the portfolio and terms of loans. |
|----|--------------------------------------------------------|

| 4. | Experience, ability, and depth of lending management and staff. |
|----|-----------------------------------------------------------------|

| 5. | Volume and severity of past due, classified and nonaccrual loans as well as and other loan modifications. |
|----|-----------------------------------------------------------------------------------------------------------|

| 6. | Quality of the Company’s loan review system, and the degree of oversight by the Company’s Board of Directors. |
|----|---------------------------------------------------------------------------------------------------------------------------|

| 7. | Existence and effect of any concentrations of credit and changes in the level of such concentrations. |
|----|-------------------------------------------------------------------------------------------------------|

| 8. | Effect of external factors, such as competition and legal and regulatory requirements. |
|----|----------------------------------------------------------------------------------------|

----

----

| (Dollars in thousands)                |   | SingleFamilyRealEstate |    |   | MultiFamilyRealEstate |   |    | CommercialReal Estate |   |   | Land andConstruction |   |   | Consumer |    |   | CommercialBusiness |   |    | Total  |   |
|-------------------------------------------------|--------|------------------------|---------|--------|-----------------------|--------|---------|----------------------------|--------|--------|---------------------------|--------|--------|----------|---------|--------|--------------------|--------|---------|--------|--------|
| Allowance for loan losses:                      |   |                   |    |   |                  |   |    |                       |   |   |                      |   |   |     |    |   |               |   |    |   |   |
| Ending balance                                  |   | $                      | 411     |   |                  | $      | 247     |                       |   | $      | 2,072                     |   |   | $        | 2,151   |   |               | $      | 19      |   |   | $ | 190 |   |   | $ | 5,090 |   |
| Ending balance:                                 |   |                   |    |   |                  |   |    |                       |   |   |                      |   |   |     |    |   |               |   |    |   |   |   |   |   |   |   |   |   |
| individually evaluated for impairment           |   | $                      | — |   |                  | $      | — |                       |   | $      | 26                        |   |   | $        | 1,751   |   |               | $      | — |   |   | $ | — |   |   | $ | 1,777 |   |
| Ending balance:                                 |   |                   |    |   |                  |   |    |                       |   |   |                      |   |   |     |    |   |               |   |    |   |   |   |   |   |   |   |   |   |
| collectively evaluated for impairment           |   | $                      | 411     |   |                  | $      | 247     |                       |   | $      | 2,046                     |   |   | $        | 400     |   |               | $      | 19      |   |   | $ | 190 |   |   | $ | 3,313 |   |
| Ending balance:                                 |   |                   |    |   |                  |   |    |                       |   |   |                      |   |   |     |    |   |               |   |    |   |   |   |   |   |   |   |   |   |
| loans acquired with deteriorated credit quality |   | $                      | — |   |                  | $      | — |                       |   | $      | —                   |   |   | $        | — |   |               | $      | — |   |   | $ | — |   |   | $ | — |   |
|                                            |   |                   |    |   |                  |   |    |                       |   |   |                      |   |   |     |    |   |               |   |    |   |   |   |   |   |   |   |   |   |
| Loans receivable:                               |   |                   |    |   |                  |   |    |                       |   |   |                      |   |   |     |    |   |               |   |    |   |   |   |   |   |   |   |   |   |
| Ending balance                                  |   | $                      | 114,985 |   |                  | $      | 6,293   |                       |   | $      | 131,509                   |   |   | $        | 23,757  |   |               | $      | 7,152   |   |   | $ | 7,822 |   |   | $ | 291,518 |   |
| Ending balance:                                 |   |                   |    |   |                  |   |    |                       |   |   |                      |   |   |     |    |   |               |   |    |   |   |   |   |   |   |   |   |   |
| individually evaluated for impairment           |   | $                      | — |   |                  | $      | — |                       |   | $      | 2,128                     |   |   | $        | 11,423  |   |               | $      | — |   |   | $ | 74 |   |   | $ | 13,625 |   |
| Ending balance:                                 |   |                   |    |   |                  |   |    |                       |   |   |                      |   |   |     |    |   |               |   |    |   |   |   |   |   |   |   |   |   |
| collectively evaluated for impairment           |   | $                      | 114,985 |   |                  | $      | 6,293   |                       |   | $      | 129,381                   |   |   | $        | 12,334  |   |               | $      | 7,152   |   |   | $ | 7,748 |   |   | $ | 277,893 |   |
| Ending balance:                                 |   |                   |    |   |                  |   |    |                       |   |   |                      |   |   |     |    |   |               |   |    |   |   |   |   |   |   |   |   |   |
| loans acquired with deteriorated credit quality |   | $                      | — |   |                  | $      | — |                       |   | $      | —                   |   |   | $        | — |   |               | $      | — |   |   | $ | — |   |   | $ | — |   |

|                   |   | Pass   |    |   | SpecialMention |   |    | Substandard |   |   | Doubtful |   |   | Total  |    |
|------------------------|--------|--------|---------|--------|----------------|--------|---------|-------------|--------|--------|----------|--------|--------|--------|---------|
| (Dollars in thousands) |   |   |    |   |           |   |    |        |   |   |     |   |   |   |    |
|                   |   |   |    |   |           |   |    |        |   |   |     |   |   |   |    |
| Real estate:           |   |   |    |   |           |   |    |        |   |   |     |   |   |   |    |
| Single-family          |   | $      | 112,603 |   |           | $      | — |        |   | $      | 2,382    |   |   | $      | — |   |   | $ | 114,985 |   |
| Multi-family           |   |   | 3,397   |   |           |   | 2,896   |        |   |   | —  |   |   |   | — |   |   |   | 6,293 |   |
| Commercial             |   |   | 126,066 |   |           |   | 3,315   |        |   |   | 2,128    |   |   |   | — |   |   |   | 131,509 |   |
| Land and construction  |   |   | 10,677  |   |           |   | 1,657   |        |   |   | 11,423   |   |   |   | — |   |   |   | 23,757 |   |
| Commercial business    |   |   | 7,698   |   |           |   | 50      |        |   |   | 74       |   |   |   | — |   |   |   | 7,822 |   |
| Consumer               |   |   | 7,152   |   |           |   | — |        |   |   | —  |   |   |   | — |   |   |   | 7,152 |   |
| Total                  |   | $      | 267,593 |   |           | $      | 7,918   |        |   | $      | 16,007   |   |   | $      | — |   |   | $ | 291,518 |   |

----

----

| (Dollars in Thousands)    |   | RecordedInvestment |    |   | UnpaidPrincipalBalance |   |    | RelatedAllowance |   |   | AverageRecordedInvestment |   |   | InterestIncomeRecognizedWhileImpaired |    |
|-------------------------------------|--------|--------------------|---------|--------|------------------------|--------|---------|------------------|--------|--------|---------------------------|--------|--------|---------------------------------------|---------|
| With no related allowance recorded: |   |               |    |   |                   |   |    |             |   |   |                      |   |   |                                  |    |
| Real estate:                        |   |               |    |   |                   |   |    |             |   |   |                      |   |   |                                  |    |
| Multi-family                        |   | $                  | — |   |                   | $      | — |             |   | $      | —                   |   |   | $                                     | — |   |   | $ | — |   |
| Commercial                          |   | $                  | 1,924   |   |                   | $      | 1,924   |             |   | $      | —                   |   |   | $                                     | 1,264   |   |   | $ | 45 |   |
| Land and construction               |   | $                  | — |   |                   | $      | — |             |   | $      | —                   |   |   | $                                     | — |   |   | $ | — |   |
| Commercial business                 |   | $                  | 74      |   |                   | $      | 74      |             |   | $      | —                   |   |   | $                                     | 74      |   |   | $ | — |   |
|                                |   |               |    |   |                   |   |    |             |   |   |                      |   |   |                                  |    |   |   |   |   |   |
| With an allowance recorded:         |   |               |    |   |                   |   |    |             |   |   |                      |   |   |                                  |    |   |   |   |   |   |
| Real estate:                        |   |               |    |   |                   |   |    |             |   |   |                      |   |   |                                  |    |   |   |   |   |   |
| Multi-family                        |   | $                  | — |   |                   | $      | — |             |   | $      | —                   |   |   | $                                     | — |   |   | $ | — |   |
| Commercial                          |   | $                  | 204     |   |                   | $      | 204     |             |   | $      | 26                        |   |   | $                                     | 204     |   |   | $ | 2 |   |
| Land and construction               |   | $                  | 11,423  |   |                   | $      | 12,010  |             |   | $      | 1,751                     |   |   | $                                     | 9,433   |   |   | $ | 378 |   |
| Commercial business                 |   | $                  | — |   |                   | $      | — |             |   | $      | —                   |   |   | $                                     | — |   |   | $ | — |   |
|                                |   |               |    |   |                   |   |    |             |   |   |                      |   |   |                                  |    |   |   |   |   |   |
| Total:                              |   |               |    |   |                   |   |    |             |   |   |                      |   |   |                                  |    |   |   |   |   |   |
| Real estate:                        |   |               |    |   |                   |   |    |             |   |   |                      |   |   |                                  |    |   |   |   |   |   |
| Multi-family                        |   | $                  | — |   |                   | $      | — |             |   | $      | —                   |   |   | $                                     | — |   |   | $ | — |   |
| Commercial                          |   | $                  | 2,128   |   |                   | $      | 2,128   |             |   | $      | 26                        |   |   | $                                     | 1,468   |   |   | $ | 47 |   |
| Land and construction               |   | $                  | 11,423  |   |                   | $      | 12,010  |             |   | $      | 1,751                     |   |   | $                                     | 9,433   |   |   | $ | 378 |   |
| Commercial business                 |   | $                  | 74      |   |                   | $      | 74      |             |   | $      | —                   |   |   | $                                     | 74      |   |   | $ | — |   |

----

----

|                                              |   | For the Years      |      |
|---------------------------------------------------|--------|------------------------------|-----------|
|                                              |   | Ended December 31, |      |
|                                              |   | 2010                         |      |   | 2009 |   |
|                                              |   |                         |      |   |   |   |
| Net Income                                        |   | $                            | 1,080,386 |   |   | $ | 1,358,697 |   |
|                                              |   |                         |      |   |   |   |   |   |
| Weighted average shares outstanding               |   |                         | 6,695,326 |   |   |   | 6,854,361 |   |
| Average unearned ESOP shares                      |   |                         | (54,201   | ) |   |   | (65,980 | ) |
| Weighted average shares outstanding – basic |   |                         | 6,641,125 |   |   |   | 6,788,381 |   |
|                                              |   |                         |      |   |   |   |   |   |
| Basic earnings per share                          |   | $                            | 0.16      |   |   | $ | 0.20 |   |

|                                       |   | December 31, |     |   | December 31, |   |
|--------------------------------------------|--------|-------------------|----------|--------|-------------------|--------|
|                                       |   | 2010              |     |   | 2009              |   |
|                                       |   |              |     |   |              |   |
| Net unrealized gain on securities          |   | $                 | 401,115  |   |              | $      | 519,070 |   |
| Net unrealized loss on retirement plans    |   |              | (857,676 | )      |              |   | (1,101,813 | ) |
| Total accumulated other comprehensive loss |   | $                 | (456,561 | )      |              | $      |  (582,743 | ) |

----

|                                       |   | December 31, 2010 |       |
|--------------------------------------------|--------|-----------------------------|------------|
|                                       |   | Amortized                   |       |   | Gross Unrealized |   |   | Fair |   |
| Available for Sale:              |   | Cost                        |       |   | Gains |   |   | Losses |   |   | Value |   |
|                                       |   |                        |       |   |   |   |   |   |   |   |   |   |
| Obligations of the Federal Home Loan Bank: |   |                        |       |   |   |   |   |   |   |   |   |   |
| Due after 1 year through 5 years           |   | $                           | 10,000,000 |   |   | $ | 1,090 |   |   |   | (52,740 | ) |   | $ | 9,948,350 |   |
| Due after 5 years through 10 years         |   |                        | 1,996,344  |   |   |   | 70,446 |   |   |   | (15,130 | ) |   |   | 2,051,660 |   |
|                                       |   |                        |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                      |   | $                           | 11,996,344 |   |   | $ | 71,536 |   |   | $ | (67,870 | ) |   | $ | 12,000,010 |   |

|                               |   | December 31, 2010 |       |
|------------------------------------|--------|-------------------|------------|
|                               |   | Amortized         |       |   | Gross Unrealized |   |   | Fair |   |
|                               |   | Cost              |       |   | Gains |   |   | Losses |   |   | Value |   |
|                               |   |              |       |   |   |   |   |   |   |   |   |   |
| Obligations of Freddie Mac:        |   |              |       |   |   |   |   |   |   |   |   |   |
| Due after 1 year through 5 years   |   | $                 | 3,000,000  |   |   | $ | 1,780 |   |   |   | (2,400 | ) |   | $ | 2,999,380 |   |
| Due after 5 years through 10 years |   |              | 2,994,500  |   |   |   | 18,590 |   |   |   | — |   |   |   | 3,013,090 |   |
| Due after 10 years                 |   |              | 5,000,000  |   |   |   | — |   |   |   | (95,410 | ) |   |   | 4,904,590 |   |
|                               |   |              |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                              |   | $                 | 10,994,500 |   |   | $ | 20,370 |   |   | $ | (97,810 | ) |   | $ | 10,917,060 |   |

----

|                               |   | December 31, 2010 |       |
|------------------------------------|--------|-----------------------------|------------|
|                               |   | Amortized                   |       |   | Gross Unrealized |   |   | Fair |   |
|                               |   | Cost                        |       |   | Gains |   |   | Losses |   |   | Value |   |
|                               |   |                        |       |   |   |   |   |   |   |   |   |   |
| Obligations of Fannie Mae:         |   |                        |       |   |   |   |   |   |   |   |   |   |
| Due after 1 year through 5 years   |   | $                           | 6,000,000  |   |   | $ | 1,850 |   |   | $ | (22,920 | ) |   | $ | 5,978,930 |   |
| Due after 5 years through 10 years |   |                        | 6,000,000  |   |   |   | — |   |   |   | (108,000 | ) |   |   | 5,892,000 |   |
|                               |   |                        |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                              |   | $                           | 12,000,000 |   |   | $ | 1,850 |   |   | $ | (130,920 | ) |   | $ | 11,870,930 |   |

|                                |   | December 31, 2010 |      |
|-------------------------------------|--------|-----------------------------|-----------|
|                                |   | Amortized                   |      |   | Gross Unrealized |   |   | Fair |   |
|                                |   | Cost                        |      |   | Gains |   |   | Losses |   |   | Value |   |
|                                |   |                        |      |   |   |   |   |   |   |   |   |   |
| Obligations of Federal Farm Credit: |   |                        |      |   |   |   |   |   |   |   |   |   |
| Due after 1 years through 5 years   |   | $                           | 2,000,000 |   |   | $ | — |   |   | $ | (4,180 | ) |   | $ | 1,995,820 |   |
| Total                               |   | $                           | 2,000,000 |   |   | $ | — |   |   | $ | (4,180 | ) |   | $ | 1,995,820 |   |

|                               |   | December 31, 2010 |       |
|------------------------------------|--------|-----------------------------|------------|
|                               |   | Amortized                   |       |   | Gross Unrealized |   |   | Fair |   |
| Held to Maturity         |   | Cost                        |       |   | Gains |   |   | Losses |   |   | Value |   |
|                               |   |                        |       |   |   |   |   |   |   |   |   |   |
| Municipal Obligations:             |   |                        |       |   |   |   |   |   |   |   |   |   |
| Due after 5 years through 10 years |   | $                           | 5,155,601  |   |   | $ | 145,429 |   |   |   | — |   |   | $ | 5,301,030 |   |
| Due after 10 years                 |   |                        | 19,488,747 |   |   |   | 101,811 |   |   | $ | (372,229 | ) |   |   | 19,218,329 |   |
|                               |   |                        |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                              |   | $                           | 24,644,348 |   |   | $ | 247,239 |   |   | $ | (372,229 | ) |   | $ | 24,519,359 |   |

|                                       |   | December 31, 2009 |      |
|--------------------------------------------|--------|-----------------------------|-----------|
|                                       |   | Amortized                   |      |   | Gross Unrealized |   |   | Fair |   |
| Available for Sale:              |   | Cost                        |      |   | Gains |   |   | Losses |   |   | Value |   |
|                                       |   |                        |      |   |   |   |   |   |   |   |   |   |
| Obligations of the Federal Home Loan Bank: |   |                        |      |   |   |   |   |   |   |   |   |   |
| Due 1 year or less                         |   | $                           | 1,000,000 |   |   | $ | 4,690 |   |   | $ | — |   |   | $ | 1,004,690 |   |
| Due after 5 years through 10 years         |   |                        | 4,995,699 |   |   |   | 100,251 |   |   |   | (16,870 | ) |   |   | 5,079,080 |   |
|                                       |   |                        |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                      |   | $                           | 5,995,699 |   |   | $ | 104,941 |   |   | $ | (16,870 | ) |   | $ | 6,083,770 |   |

|                             |   | December 31, 2009 |      |
|----------------------------------|--------|-----------------------------|-----------|
|                             |   | Amortized                   |      |   | Gross Unrealized |   |   | Fair |   |
|                             |   | Cost                        |      |   | Gains |   |   | Losses |   |   | Value |   |
|                             |   |                        |      |   |   |   |   |   |   |   |   |   |
| Obligations of Freddie Mac:      |   |                        |      |   |   |   |   |   |   |   |   |   |
| Due after 1 year through 5 years |   | $                           | 1,000,000 |   |   | $ | — |   |   |   | (15,310 | ) |   | $ | 984,690 |   |
| Due after 10 years               |   |                        | 1,000,000 |   |   |   | — |   |   |   | (5,000 | ) |   |   | 995,000 |   |
| Total                            |   | $                           | 2,000,000 |   |   | $ | — |   |   | $ | (20,310 | ) |   | $ | 1,979,690 |   |

----

|                               |   | December 31, 2009 |       |
|------------------------------------|--------|-----------------------------|------------|
|                               |   | Amortized                   |       |   | Gross Unrealized |   |   | Fair |   |
|                               |   | Cost                        |       |   | Gains |   |   | Losses |   |   | Value |   |
|                               |   |                        |       |   |   |   |   |   |   |   |   |   |
| Obligations of Fannie Mae:         |   |                        |       |   |   |   |   |   |   |   |   |   |
| Due after 5 years through 10 years |   | $                           | 6,000,000  |   |   | $ | 2,190 |   |   | $ | (41,250 | ) |   | $ | 5,960,940 |   |
| Due after 10 years                 |   |                        | 14,999,122 |   |   |   | 2,820 |   |   |   | (136,492 | ) |   |   | 14,865,450 |   |
|                               |   |                        |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                              |   | $                           | 20,999,122 |   |   | $ | 5,010 |   |   | $ | (177,742 | ) |   | $ | 20,826,390 |   |

|                               |   | December 31, 2009 |       |
|------------------------------------|--------|-----------------------------|------------|
|                               |   | Amortized                   |       |   | Gross Unrealized |   |   | Fair |   |
| Held to Maturity         |   | Cost                        |       |   | Gains |   |   | Losses |   |   | Value |   |
|                               |   |                        |       |   |   |   |   |   |   |   |   |   |
|                               |   |                        |       |   |   |   |   |   |   |   |   |   |
| Municipal Obligations:             |   |                        |       |   |   |   |   |   |   |   |   |   |
| Due after 5 years through 10 years |   | $                           | 4,315,560  |   |   | $ | 169,914 |   |   |   | — |   |   | $ | 4,485,474 |   |
| Due after 10 years                 |   |                        | 19,130,243 |   |   |   | 341,992 |   |   | $ | (161,285 | ) |   |   | 19,310,950 |   |
|                               |   |                        |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                              |   | $                           | 23,445,803 |   |   | $ | 511,906 |   |   | $ | (161,285 | ) |   | $ | 23,796,424 |   |

|                            |   | December 31, 2010 |       |
|---------------------------------|--------|-----------------------------|------------|
|                            |   | Amortized                   |       |   | Gross Unrealized |   |   | Fair |   |
|                            |   | Cost                        |       |   | Gains |   |   | Losses |   |   | Value |   |
|                            |   |                        |       |   |   |   |   |   |   |   |   |   |
| GNMA pass-through certificates  |   | $                           | 1,666,936  |   |   | $ | 81,066 |   |   |   | — |   |   | $ | 1,748,002 |   |
| FHLMC pass-through certificates |   |                        | 5,464,352  |   |   |   | 348,980 |   |   |   | — |   |   |   | 5,813,332 |   |
| FNMA pass-through certificates  |   |                        | 8,199,812  |   |   |   | 400,514 |   |   | $ | (15,787 | ) |   |   | 8,584,539 |   |
|                            |   |                        |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                           |   | $                           | 15,331,100 |   |   | $ | 830,560 |   |   | $ | (15,787 | ) |   | $ | 16,145,873 |   |

----

|                            |   | December 31, 2009 |       |
|---------------------------------|--------|-----------------------------|------------|
|                            |   | Amortized                   |       |   | Gross Unrealized |   |   | Fair |   |
|                            |   | Cost                        |       |   | Gains |   |   | Losses |   |   | Value |   |
|                            |   |                        |       |   |   |   |   |   |   |   |   |   |
| GNMA pass-through certificates  |   | $                           | 2,141,689  |   |   | $ | 79,369 |   |   |   | — |   |   | $ | 2,221,058 |   |
| FHLMC pass-through certificates |   |                        | 8,379,078  |   |   |   | 418,743 |   |   |   | — |   |   |   | 8,797,821 |   |
| FNMA pass-through certificates  |   |                        | 11,942,817 |   |   |   | 408,396 |   |   | $ | (15,067 | ) |   |   | 12,336,146 |   |
|                            |   |                        |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                           |   | $                           | 22,463,584 |   |   | $ | 906,508 |   |   | $ | (15,067 | ) |   | $ | 23,355,025 |   |

|                      |   | December 31, |        |
|---------------------------|--------|-------------------|-------------|
|                      |   | 2010              |        |   | 2009 |   |
| Real estate loans:        |   |              |        |   |   |   |
| Single-family             |   | $                 | 114,984,228 |   |   | $ | 114,953,350 |   |
| Multi-family              |   |              | 6,292,863   |   |   |   | 1,231,148 |   |
| Commercial                |   |              | 131,509,209 |   |   |   | 131,873,637 |   |
| Land and construction     |   |              | 23,757,105  |   |   |   | 24,580,893 |   |
| Commercial business       |   |              | 7,822,141   |   |   |   | 8,457,702 |   |
| Consumer and other loans  |   |              | 7,152,080   |   |   |   | 7,613,968 |   |
| Total loans receivable    |   |              | 291,517,626 |   |   |   | 288,710,698 |   |
| Less:                     |   |              |        |   |   |   |   |   |
| Deferred fees             |   |              | (371,966    | ) |   |   | (165,384 | ) |
| Allowance for loan losses |   |              | (5,089,617  | ) |   |   | (3,537,736 | ) |
| Loans receivable - net    |   | $                 | 286,056,043 |   |   | $ | 285,007,578 |   |

|                            |   | Year Ended   |      |
|---------------------------------|--------|-------------------|-----------|
|                            |   | December 31, |      |
|                            |   |              |      |   |   |   |
|                            |   | 2010              |      |   | 2009 |   |
|                            |   |              |      |   |   |   |
| Balance, beginning of year      |   | $                 | 3,537,736 |   |   | $ | 3,169,118 |   |
| Provision charged to operations |   |              | 2,120,000 |   |   |   | 528,215 |   |
| Charge-offs                     |   |              | (598,788  | ) |   |   | (160,661 | ) |
| Recoveries                      |   |              | 30,669    |   |   |   | 1,064 |   |
|                            |   |              |      |   |   |   |   |   |
| Balance, end of year            |   | $                 | 5,089,617 |   |   | $ | 3,537,736 |   |

----

|                                          |   | December 31, |       |
|-----------------------------------------------|--------|-------------------|------------|
|                                          |   | 2010              |       |   | 2009 |   |
|                                          |   |              |       |   |   |   |
| Impaired loans without a valuation allowance  |   | $                 | 1,997,476  |   |   | $ | 1,543,035 |   |
|                                          |   |              |       |   |   |   |   |   |
| Impaired loans with a valuation allowance     |   | $                 | 11,627,099 |   |   | $ | 4,435,158 |   |
|                                          |   |              |       |   |   |   |   |   |
| Total impaired loans                          |   | $                 | 13,624,575 |   |   | $ | 5,978,193 |   |
|                                          |   |              |       |   |   |   |   |   |
| Valuation allowance related to impaired loans |   | $                 | 1,777,475  |   |   | $ | 107,903 |   |

|                                                         |   | Year Ended   |       |
|--------------------------------------------------------------|--------|-------------------|------------|
|                                                         |   | December 31, |       |
|                                                         |   | 2010              |       |   | 2009 |   |
|                                                         |   |              |       |   |   |   |
| Average impaired loans                                       |   | $                 | 10,974,907 |   |   | $ | 4,687,791 |   |
| Interest income recognized on impaired loans                 |   |              | 429,405    |   |   |   | 18,798 |   |
| Interest income recognized on a cash basis on impaired loans |   |              | 429,405    |   |   |   | 18,798 |   |

|                     |   | EstimatedUseful         |   |   | December 31, |      |
|--------------------------|--------|-------------------------|--------|--------|-------------------|-----------|
|                     |   | Life in Years |   |   | 2010              |      |   | 2009 |   |
|                     |   |                    |   |   |              |      |   |   |   |
| Land and buildings       |   | Indefinite/40           |   |   | $                 | 4,512,173 |   |   | $ | 4,320,486 |   |
| Furniture and fixtures   |   | 2-7                     |   |   |              | 5,734,693 |   |   |   | 5,507,255 |   |
|                     |   |                    |   |   |              |      |   |   |   |   |   |   |
| Total                    |   |                    |   |   |              |      | 10,246,866 |   |   |   | 9,827,741 |   |
| Accumulated depreciation |   |                    |   |   |              |      | (7,700,175 | ) |   |   | (7,297,191 | ) |
|                     |   |                    |   |   |              |      |   |   |   |   |   |   |
| Net                      |   |                    |   |   |              | $         | 2,546,691 |   |   | $ | 2,530,550 |   |

----

|                                    |   | December 31, |        |
|-----------------------------------------|--------|--------------|-------------|
|                                    |   | 2010         |        |   | 2009 |   |
|                                    |   | Amount       |        |   | Percent |   |   | Amount |   |   | Percent |   |
|                                    |   |         |        |   |   |   |   |   |   |   |   |   |
| Money market deposit accounts           |   | $            | 24,458,008  |   |   |   | 6.4 | % |   | $ | 18,663,769 |   |   |   | 5.0 | % |
| Passbook and statement savings accounts |   |         | 42,846,575  |   |   |   | 11.1 |   |   |   | 40,891,707 |   |   |   | 10.9 |   |
| Certificates of less than $100,000      |   |         | 190,429,881 |   |   |   | 49.5 |   |   |   | 194,567,026 |   |   |   | 51.8 |   |
| Certificates of $100,000 or more        |   |         | 64,254,329  |   |   |   | 16.7 |   |   |   | 57,016,155 |   |   |   | 15.2 |   |
| NOW accounts                            |   |         | 50,410,092  |   |   |   | 13.1 |   |   |   | 48,609,281 |   |   |   | 13.0 |   |
| Non-interest bearing accounts           |   |         | 12,195,934  |   |   |   | 3.2 |   |   |   | 15,506,305 |   |   |   | 4.1 |   |
|                                    |   |         |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                   |   | $            | 384,594,819 |   |   |   | 100.0 | % |   | $ | 375,254,243 |   |   |   | 100.0 | % |

|       |   | December 31, 2010 |        |
|------------|--------|-----------------------------|-------------|
|       |   | Amount                      |        |   | Percent |   |
|       |   |                        |        |   |   |   |
| 2011       |   | $                           | 192,888,129 |   |   |   | 75.7 | % |
| 2012       |   |                        | 43,313,353  |   |   |   | 17.0 | % |
| 2013       |   |                        | 12,771,262  |   |   |   | 5.1 | % |
| 2014       |   |                        | 1,772,316   |   |   |   | 0.7 | % |
| 2015       |   |                        | 1,868,915   |   |   |   | 0.7 | % |
| Thereafter |   |                        | 2,070,235   |   |   |   | 0.8 | % |
| Total      |   | $                           | 254,684,210 |   |   |   | 100.0 | % |

|                               |   | Year Ended December 31, |      |
|------------------------------------|--------|----------------------------------------|-----------|
|                               |   | 2010                                   |      |   | 2009 |   |
|                               |   |                                   |      |   |   |   |
| Money market deposit accounts      |   | $                                      | 163,749   |   |   | $ | 133,897 |   |
| Other savings deposits             |   |                                   | 209,944   |   |   |   | 200,760 |   |
| Certificates of less than $100,000 |   |                                   | 3,894,996 |   |   |   | 5,403,356 |   |
| Certificates of $100,000 or more   |   |                                   | 1,058,229 |   |   |   | 1,282,717 |   |
| NOW accounts                       |   |                                   | 239,893   |   |   |   | 235,983 |   |
| Total                              |   | $                                      | 5,566,811 |   |   | $ | 7,256,713 |   |

----

|                     |   |     |   | Interest |   |   | December 31, |   |
|--------------------------|--------|----------|--------|----------|--------|--------|-------------------|--------|
|                     |   | Due      |   | Rate     |   |   | 2010              |   |   | 2009 |   |
|                     |   |     |   |     |   |   |              |   |   |   |   |
| FHLB convertible advance |   | 02/03/10 |   |     | 6.05   |   |              | $      | — |   |   | $ | 6,000,000 |   |
| FHLB convertible advance |   | 05/17/10 |   |     | 6.44   |   |              |   | — |   |   |   | 11,000,000 |   |
| FHLB convertible advance |   | 06/28/10 |   |     | 6.44   |   |              |   | — |   |   |   | 10,000,000 |   |
| FHLB convertible advance |   | 09/22/10 |   |     | 6.10   |   |              |   | — |   |   |   | 5,000,000 |   |
| Total                    |   |     |   |     |   |   |              | $      | — |   |   | $ | 32,000,000 |   |

----

|                                                 |   | December 31, |      |
|------------------------------------------------------|--------|--------------|-----------|
|                                                 |   | 2010         |      |   | 2009 |   |
| Deferred tax assets:                                 |   |         |      |   |   |   |
| Depreciation and amortization                        |   | $            | 179,520   |   |   | $ | 121,380 |   |
| Allowance for loan losses                            |   |         | 1,730,260 |   |   |   | 1,202,580 |   |
| Additional minimum liability for retirement plans    |   |         | 441,833   |   |   |   | 567,601 |   |
| Securities impairment                                |   |         | 143,286   |   |   |   | 317,900 |   |
| Supplemental retirement benefits                     |   |         | 1,249,500 |   |   |   | 1,201,900 |   |
| Capital loss carryforward                            |   |         | 502,374   |   |   |   | 327,760 |   |
| Alternative minimum tax                              |   |         | 1,241,000 |   |   |   | 1,347,000 |   |
| State tax loss carryfowards                          |   |         | 302,706   |   |   |   | 336,776 |   |
| Other                                                |   |         | 372,312   |   |   |   | 197,752 |   |
| Total deferred tax assets                            |   |         | 6,162,791 |   |   |   | 5,620,649 |   |
|                                                 |   |         |      |   |   |   |   |   |
| Valuation allowance                                  |   |         | (302,706  | ) |   |   | (336,776 | ) |
|                                                 |   |         |      |   |   |   |   |   |
| Deferred tax liabilities:                            |   |         |      |   |   |   |   |   |
| Deferred loan fees                                   |   |         | (85,340   | ) |   |   | (94,860 | ) |
| Pension Plan                                         |   |         | (383,860  | ) |   |   | (375,360 | ) |
| Net unrealized gain on securities available for sale |   |         | (206,635  | ) |   |   | (267,399 | ) |
| Total deferred tax liabilities                       |   |         | (675,835  | ) |   |   | (737,619 | ) |
|                                                 |   |         |      |   |   |   |   |   |
| Net deferred tax asset                               |   | $            | 5,184,250 |   |   | $ | 4,546,254 |   |

|              |   | 2010   |     |   | 2009   |   |
|-------------------|--------|--------|----------|--------|--------|--------|
|              |   |   |     |   |   |   |
| Current, federal  |   | $      | 575,000  |   |   | $      | 356,000 |   |
| Deferred, federal |   |   | (703,000 | )      |   |   | (397,000 | ) |
|              |   |   |     |   |   |   |   |   |
| Total             |   | $      | (128,000 | )      |   | $      | (41,000 | ) |

|                                                     |   | Year Ended December 31, |     |
|----------------------------------------------------------|--------|----------------------------------------|----------|
|                                                     |   |                                   |     |   |   |   |   |   |   |   |   |   |
|                                                     |   | 2010                                   |     |   | 2009 |   |
|                                                     |   |                                   |     |   | Percentage |   |   |   |   |   | Percentage |   |
|                                                     |   |                                   |     |   | of Pretax |   |   |   |   |   | of Pretax |   |
|                                                     |   | Amount                                 |     |   | Income |   |   | Amount |   |   | Income |   |
|                                                     |   |                                   |     |   |   |   |   |   |   |   |   |   |
| Expense at statutory rate                                |   | $                                      | 323,811  |   |   |   | 34.0 | % |   | $ | 448,017 |   |   |   | 34.0 | % |
| Adjustments resulting from:                              |   |                                   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tax-exempt income                                        |   |                                   | (355,522 | ) |   |   | (37.3 | ) |   |   | (398,121 | ) |   |   | (30.2 | ) |
| Increase in cash surrender value of life insurance       |   |                                   | (114,133 | ) |   |   | (12.0 | ) |   |   | (120,783 | ) |   |   | (9.2 | ) |
| Other                                                    |   |                                   | 17,844   |   |   |   | 1.9 |   |   |   | 29,887 |   |   |   | 2.3 |   |
| Income tax benefit per consolidated statements of income |   | $                                      | (128,000 | ) |   |   | (13.4 | )% |   | $ | (41,000 | ) |   |   | (3.1 | )% |

----

|                                     |   | December 31, |      |
|------------------------------------------|--------|-------------------|-----------|
|                                     |   | 2010              |      |   | 2009 |   |
|                                     |   |              |      |   |   |   |
| Fixed-rate (ranging from 3.88% to 7.00%) |   | $                 | 4,683,000 |   |   | $ | 7,455,322 |   |
| Adjustable-rate                          |   |              | 3,732,500 |   |   |   | 382,250 |   |
|                                     |   |              |      |   |   |   |   |   |
| Total                                    |   | $                 | 8,415,500 |   |   | $ | 7,837,572 |   |

|                          |   | Year Ending December 31, |      |
|-------------------------------|--------|-----------------------------------------|-----------|
|                          |   |                                    |      |
| 2011                          |   | $                                       | 409,850   |   |
| 2012                          |   |                                    | 345,125   |   |
| 2013                          |   |                                    | 317,624   |   |
| 2014                          |   |                                    | 318,370   |   |
| 2015                          |   |                                    | 307,870   |   |
| Thereafter                    |   |                                    | 743,661   |   |
| Total minimum rental payments |   | $                                       | 2,442,500 |   |

----

|                                  |   | 2010   |     |   | 2009   |   |
|---------------------------------------|--------|--------|----------|--------|--------|--------|
| Net Periodic Benefit Cost             |   |   |     |   |   |   |
| Service Cost                          |   | $      | 294,349  |   |   | $      | 297,641 |   |
| Interest Cost                         |   |   | 267,414  |   |   |   | 264,737 |   |
| Expected Return on Plan Assets        |   |   | (338,700 | )      |   |   | (288,812 | ) |
| Amortization of Transition Obligation |   |   | —  |   |   |   | — |   |
| Amortization of Prior Service Cost    |   |   | 12,685   |   |   |   | 12,685 |   |
| Amortization of Loss                  |   |   | 39,747   |   |   |   | 102,014 |   |
| Net Periodic Benefit Cost             |   | $      | 275,495  |   |   | $      | 388,265 |   |

|                                                                                        |   |
|---------------------------------------------------------------------------------------------|--------|
| Other changes in plan assets and benefit obligations recognized in other comprehensive loss |   |
| Net gain                                                                                    |   | $ | (78,127 | ) |   | $ | (561,200 | ) |
| Amortization of net loss                                                                    |   |   | (39,747 | ) |   |   | (102,014 | ) |
| Amortization of prior service cost                                                          |   |   | (12,685 | ) |   |   | (12,685 | ) |
| Amortization of transition obligation                                                       |   |   | — |   |   |   | — |   |
| Total recognized in other comprehensive income (loss)                                       |   | $ | (130,559 | ) |   | $ | (675,899 | ) |
|                                                                                        |   |   |   |   |   |   |   |   |
| Total recognized in net periodic benefit cost and other comprehensive loss                  |   | $ | (144,936 | ) |   | $ | (287,634 | ) |

|                              |   | 2010   |   |   | 2009   |   |
|---------------------------------------------|--------|--------|--------|--------|--------|--------|
| Key Assumptions                             |   |   |   |   |   |   |
|                                        |   |   |   |   |   |   |
| Discount Rate for Net Periodic Benefit Cost |   |   | 6.00   | %      |   |   | 6.00 | % |
| Salary Scale for Net Periodic Benefit Cost  |   |   | 4.00   | %      |   |   | 4.00 | % |
| Expected Return on Plan Assets              |   |   | 8.00   | %      |   |   | 8.00 | % |
|                                        |   |   |   |   |   |   |   |   |
| Discount Rate for Plan Obligations          |   |   | 5.50   | %      |   |   | 6.00 | % |
| Salary Scale for Plan Obligations           |   |   | 4.00   | %      |   |   | 4.00 | % |

|                                              |   | 2010   |      |   | 2009   |   |
|---------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Change in Projected Benefit Obligation            |   |   |      |   |   |   |
| Projected Benefit Obligation at Beginning of Year |   | $      | 4,663,716 |   |   | $      | 4,439,594 |   |
| Service Cost                                      |   |   | 294,349   |   |   |   | 297,641 |   |
| Interest Cost                                     |   |   | 267,414   |   |   |   | 264,737 |   |
| Benefits paid                                     |   |   | (287,367  | )      |   |   | (406,277 | ) |
| Actuarial Loss                                    |   |   | 82,419    |   |   |   | 68,021 |   |
| Projected Benefit Obligation at End of Year       |   |   | 5,020,531 |   |   |   | 4,663,716 |   |

| Change in Plan Assets During Year                           |   |   |      |   |   |   |
|-------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Fair Value of Plan Assets at Beginning of Year              |   |   | 4,305,630 |   |   |   | 3,193,874 |   |
| Actual Return on Plan Assets                                |   |   | 499,246   |   |   |   | 918,033 |   |
| Employer Contributions                                      |   |   | 300,000   |   |   |   | 600,000 |   |
| Benefits Paid                                               |   |   | (287,367  | )      |   |   | (406,277 | ) |
| Fair Value of Plan Assets at End of Year                    |   |   | 4,817,509 |   |   |   | 4,305,630 |   |
|                                                        |   |   |      |   |   |   |   |   |
| Funded Status at End of Year, included in other liabilities |   | $      | (203,022  | )      |   | $      | (358,086 | ) |

|                               |   |   |      |   |   |   |      |   |
|------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|
| Benefit Obligations at End of Year |   |   |      |   |   |   |      |   |
| Accumulated Benefit Obligation     |   | $      | 3,838,069 |   |   | $      | 3,472,316 |   |

|                                                       |   |   |      |   |   |   |      |   |
|------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|
| Amounts Recognized in Accumulated Other Comprehensive Loss |   |   |      |   |   |   |      |   |
| Net loss                                                   |   | $      | 964,489   |   |   | $      | 1,082,363 |   |
| Prior service cost                                         |   |   | 101,482   |   |   |   | 114,167   |   |
| Total                                                      |   | $      | 1,065,971 |   |   | $      | 1,196,530 |   |

----

| 2011      |   | $      | 179,892   |   |
|-----------|--------|--------|-----------|--------|
| 2012      |   |   | 391,888   |   |
| 2013      |   |   | 123,875   |   |
| 2014      |   |   | 596,186   |   |
| 2015      |   |   | 74,458    |   |
| 2016-2020 |   |   | 4,347,252 |   |

|                                  |   |   |      |   |   | Percentage     |   |
|---------------------------------------|--------|--------|-----------|--------|--------|----------------|--------|
| Investment Class                 |   |   |      |   |   | of Assets |   |
| Fixed Income Investments-mutual funds |   | $      | 1,406,741 |   |   |           | 29.2   | % |
| Equity Investments-mutual funds       |   |   | 2,967,647 |   |   |           | 61.6   | % |
| Cash and Cash Equivalents             |   |   | 443,121   |   |   |           | 9.2    | % |
|                                  |   |   |      |   |   |           |   |   |
| Fair Value as of December 31, 2010    |   | $      | 4,817,509 |   |   |           | 100.0  | % |

| Description  |   | Total  |      |   | (Level 1)Quoted Prices inActive Marketsfor IdenticalAssets |   |      | (Level 2)SignificantOtherObservableInputs |   |   | (Level 3)SignificantUnobservableInputs |   |
|-------------------|--------|--------|-----------|--------|-------------------------------------------------------------------------------------|--------|-----------|------------------------------------------------|--------|--------|---------------------------------------------|--------|
|              |   |   |      |   |                                                                                |   |      |                                           |   |   |                                        |   |
| Cash              |   | $      | 443,121   |   |                                                                                | $      | 443,121   |                                           |   | $      | —                                     |   |   | $ | — |   |
| Mutual Funds      |   |   | 4,374,388 |   |                                                                                |   | 4,374,388 |                                           |   |   | —                                     |   |   |   | — |   |
| Total             |   | $      | 4,817,509 |   |                                                                                | $      | 4,817,509 |                                           |   | $      | —                                     |   |   | $ | — |   |

----

| Description  |   | Total  |      |   | (Level 1)Quoted Prices inActive Marketsfor IdenticalAssets |   |      | (Level 2)SignificantOtherObservableInputs |   |   | (Level 3)SignificantUnobservableInputs |   |
|-------------------|--------|--------|-----------|--------|-------------------------------------------------------------------------------------|--------|-----------|------------------------------------------------|--------|--------|---------------------------------------------|--------|
|              |   |   |      |   |                                                                                |   |      |                                           |   |   |                                        |   |
| Cash              |   | $      | 400,908   |   |                                                                                | $      | 400,908   |                                           |   | $      | —                                     |   |   | $ | — |   |
| Mutual Funds      |   |   | 3,904,722 |   |                                                                                |   | 3,904,722 |                                           |   |   | —                                     |   |   |   | — |   |
| Total             |   | $      | 4,305,630 |   |                                                                                | $      | 4,305,630 |                                           |   | $      | —                                     |   |   | $ | — |   |

|                                           |   | Year Ended   |       |
|------------------------------------------------|--------|--------------|------------|
|                                           |   | December 31, |       |
|                                           |   | 2010         |       |   | 2009 |   |
|                                           |   |         |       |   |   |   |
| Change in benefit obligation during year       |   |         |       |   |   |   |   |   |
| Benefit obligation at beginning of year        |   | $            | 4,007,398  |   |   | $ | 3,888,031 |   |
| Service cost                                   |   |         | 39,459     |   |   |   | 37,228 |   |
| Interest cost                                  |   |         | 235,409    |   |   |   | 228,518 |   |
| Benefit payments                               |   |         | (158,792   | ) |   |   | (158,792 | ) |
| Actuarial (gain) loss                          |   |         | (215,297   | ) |   |   | 12,413 |   |
| Benefit obligation at end of year              |   |         | 3,908,177  |   |   |   | 4,007,398 |   |
|                                           |   |         |       |   |   |   |   |   |
| Change in plan assets during year              |   |         |       |   |   |   |   |   |
| Fair value of plan assets at beginning of year |   |         | —    |   |   |   | — |   |
| Employer contributions                         |   |         | 158,792    |   |   |   | 158,792 |   |
| Benefit payments                               |   |         | (158,792   | ) |   |   | (158,792 | ) |
| Fair value of plan assets at end of year       |   |         | —    |   |   |   | — |   |
| Funded status                                  |   |         |       |   |   |   |   |   |
| Funded status (included in other liabilities)  |   |         | (3,908,177 | ) |   |   | (4,007,398 | ) |
| Unrecognized net loss                          |   |         | 233,538    |   |   |   | 472,884 |   |
| Unrecognized prior service cost                |   |         | —    |   |   |   | — |   |
| Net liability recognized                       |   | $            | (3,674,639 | ) |   | $ | (3,534,514 | ) |

|                                                               |   |   |     |   |   |   |
|--------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
| Change in accumulated other comprehensive loss                     |   |   |     |   |   |   |
| Accumulated other comprehensive loss at beginning of year          |   | $      | 472,884  |   |   | $      | 484,360 |   |
| Amortization of net loss                                           |   |   | (24,049  | )      |   |   | (23,889 | ) |
| Actuarial loss (gain)                                              |   |   | (215,297 | )      |   |   | 12,413 |   |
| Amortization of prior service cost                                 |   |   | —  |   |   |   | — |   |
| Net change in other comprehensive loss                             |   |   | (239,346 | )      |   |   | (11,476 | ) |
| Accumulated other comprehensive loss at end of year                |   | $      | 233,538  |   |   | $      | 472,884 |   |
|                                                               |   |   |     |   |   |   |   |   |
| Expected cash-flow information for years after current fiscal year |   |   |     |   |   |   |   |   |
| 2011                                                               |   |   |     |   |   | $      | 158,792 |   |
| 2012                                                               |   |   |     |   |   |   | 158,792 |   |
| 2013                                                               |   |   |     |   |   |   | 179,240 |   |
| 2014                                                               |   |   |     |   |   |   | 229,798 |   |
| 2015                                                               |   |   |     |   |   |   | 280,973 |   |
| 2016-2020                                                          |   |   |     |   |   |   | 1,901,060 |   |

----

|                               |   | 2010   |    |   | 2009   |   |
|------------------------------------|--------|--------|---------|--------|--------|--------|
| Net periodic benefit cost          |   |   |    |   |   |   |
| Service cost                       |   | $      | 39,459  |   |   | $      | 37,228 |   |
| Interest cost                      |   |   | 235,409 |   |   |   | 228,518 |   |
| Amortization of prior service cost |   |   | — |   |   |   | — |   |
| Amortization of net loss           |   |   | 24,049  |   |   |   | 23,889 |   |
| Net periodic benefit cost          |   | $      | 298,917 |   |   | $      | 289,635 |   |
|                               |   |   |    |   |   |   |   |   |
| Key Assumptions                    |   |   |    |   |   |   |   |   |
| Discount rate during the year      |   |   | 6.00    | %      |   |   | 6.00 | % |
| Discount rate at end of year       |   |   | 5.50    | %      |   |   | 6.00 | % |

|                           |   | December 31, |   |
|--------------------------------|--------|-------------------|--------|
|                           |   | 2010              |   |   | 2009 |   |
| Shares released for allocation |   |              | 42,154 |   |   |   | 30,110 |   |
| Unreleased shares              |   |              | 48,179 |   |   |   | 60,223 |   |
| Total ESOP shares              |   |              | 90,333 |   |   |   | 90,333 |   |

----

|                      |   |                   |   |   |                           |   |   | To Be Well   |   |
|---------------------------|--------|------------------------|--------|--------|--------------------------------|--------|--------|------------------------|--------|
|                      |   |                   |   |   |                           |   |   | Capitalized Under |   |
|                      |   |                   |   |   | For Capital Adequacy |   |   | Prompt Corrective |   |
|                      |   | Actual                 |   |   | Purposes                       |   |   | Action Provisions |   |
|                      |   |                   |   |   |                           |   |   |                   |   |   |   |   |   |   |   |   |   |   |
|                      |   | Amount                 |   |   | Ratio                          |   |   | Amount                 |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
|                      |   | (Dollars in thousands) |   |
| As of December 31, 2010:  |   |              |   |
| Tier 1 Capital            |   | $                      | 47,999 |   |                           |   | 10.83  | %                      |   | $ | 17,732 |   |   |   | 4.00 | % |   | $ | 22,165 |   |   |   | 5.00 | % |
| (to average assets)       |   |                   |   |   |                           |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital            |   |                   | 47,999 |   |                           |   | 16.13  |                   |   |   | 11,904 |   |   |   | 4.00 |   |   |   | 17,856 |   |   |   | 6.00 |   |
| (to risk-weighted assets) |   |                   |   |   |                           |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Capital             |   |                   | 51,736 |   |                           |   | 17.38  |                   |   |   | 23,808 |   |   |   | 8.00 |   |   |   | 29,760 |   |   |   | 10.00 |   |
| (to risk-weighted assets) |   |                   |   |   |                           |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                      |   |                   |   |   |                           |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As of December 31, 2009:  |   |                   |   |   |                           |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital            |   | $                      | 46,815 |   |                           |   | 10.17  | %                      |   | $ | 18,415 |   |   |   | 4.00 | % |   | $ | 23,019 |   |   |   | 5.00 | % |
| (to average assets)       |   |                   |   |   |                           |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital            |   |                   | 46,815 |   |                           |   | 15.97  |                   |   |   | 11,728 |   |   |   | 4.00 |   |   |   | 17,592 |   |   |   | 6.00 |   |
| (to risk-weighted assets) |   |                   |   |   |                           |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Capital             |   |                   | 50,353 |   |                           |   | 17.17  |                   |   |   | 23,456 |   |   |   | 8.00 |   |   |   | 29,320 |   |   |   | 10.00 |   |
| (to risk-weighted assets) |   |                   |   |   |                           |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| Level 1: | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------|

----

| Level 2: | Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Level 3 : | Prices or valuation techniques that require inputs that are both significant to fair value measurement and unobservable (i.e. support with little or no market value activity). |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Description                   |   | Total  |   |   | (Level 1)Prices inActiveMarkets forIdenticalAssets |   |    | (Level 2)SignificantOtherObservableInputs |   |   | (Level 3)SignificantUnobservableInputs |   |
|------------------------------------|--------|--------|--------|--------|-------------------------------------------------------------------|--------|---------|------------------------------------------------|--------|--------|---------------------------------------------|--------|
|                               |   |   |   |
| Obligations of FHLB                |   | $      | 12,000 |   |                                                              | $      | — |                                           |   | $      | 12,000                                      |   |   | $ | — |   |
| Obligations of Freddie Mac         |   |   | 10,917 |   |                                                              |   | — |                                           |   |   | 10,917                                      |   |   |   | — |   |
| Obligations of Fannie Mae          |   |   | 11,871 |   |                                                              |   | — |                                           |   |   | 11,871                                      |   |   |   | — |   |
| Obligations of Federal Farm Credit |   |   | 1,996  |   |                                                              |   | — |                                           |   |   | 1,996                                       |   |   |   | — |   |
| Obligations of GNMA                |   |   | 1,748  |   |                                                              |   | — |                                           |   |   | 1,748                                       |   |   |   | — |   |
| Obligations of FHLMC               |   |   | 5,813  |   |                                                              |   | — |                                           |   |   | 5,813                                       |   |   |   | — |   |
| Obligations of FNMA                |   |   | 8,585  |   |                                                              |   | — |                                           |   |   | 8,585                                       |   |   |   | — |   |
| Total                              |   | $      | 52,930 |   |                                                              | $      | — |                                           |   | $      | 52,930                                      |   |   | $ | — |   |

| Description        |   | Total  |   |   | (Level 1)Prices in ActiveMarkets forIdentical Assets |   |    | (Level 2)SignificantOtherObservableInputs |   |   | (Level 3)SignificantUnobservableInputs |   |
|-------------------------|--------|--------|--------|--------|-------------------------------------------------------------------------------|--------|---------|------------------------------------------------|--------|--------|---------------------------------------------|--------|
|                    |   |   |   |
| Impaired loans          |   | $      | 9,850  |   |                                                                          | $      | — |                                           |   | $      | —                                     |   |   | $ | 9,850 |   |
| Other real estate owned |   |   | 590    |   |                                                                          |   | — |                                           |   |   | —                                     |   |   |   | 590 |   |
| Total                   |   | $      | 10,440 |   |                                                                          | $      | — |                                           |   | $      | —                                     |   |   | $ | 10,440 |   |

----

| Description           |   | Total  |   |   | (Level 1)Prices in ActiveMarkets forIdentical Assets |   |    | (Level 2)SignificantOtherObservableInputs |   |   | (Level 3)SignificantUnobservableInputs |   |
|----------------------------|--------|--------|--------|--------|-------------------------------------------------------------------------------|--------|---------|------------------------------------------------|--------|--------|---------------------------------------------|--------|
|                       |   |   |   |
| Obligations of FHLB        |   | $      | 6,084  |   |                                                                          | $      | — |                                           |   | $      | 6,084                                       |   |   | $ | — |   |
| Obligations of Freddie Mac |   |   | 1,980  |   |                                                                          |   | — |                                           |   |   | 1,980                                       |   |   |   | — |   |
| Obligations of Fannie Mae  |   |   | 20,826 |   |                                                                          |   | — |                                           |   |   | 20,826                                      |   |   |   | — |   |
| Obligations of GNMA        |   |   | 2,221  |   |                                                                          |   | — |                                           |   |   | 2,221                                       |   |   |   | — |   |
| Obligations of FHLMC       |   |   | 8,798  |   |                                                                          |   | — |                                           |   |   | 8,798                                       |   |   |   | — |   |
| Obligations of FNMA        |   |   | 12,336 |   |                                                                          |   | — |                                           |   |   | 12,336                                      |   |   |   | — |   |
| Total                      |   | $      | 52,245 |   |                                                                          | $      | — |                                           |   | $      | 52,245                                      |   |   | $ | — |   |

| Description        |   | Total  |   |   | (Level 1)Prices in ActiveMarkets forIdentical Assets |   |    | (Level 2)SignificantOtherObservableInputs |   |   | (Level 3)SignificantUnobservableInputs |   |
|-------------------------|--------|--------|--------|--------|-------------------------------------------------------------------------------|--------|---------|------------------------------------------------|--------|--------|---------------------------------------------|--------|
|                    |   |   |   |
| Impaired loans          |   | $      | 4,327  |   |                                                                          | $      | — |                                           |   | $      | —                                     |   |   | $ | 4,327 |   |
| Other real estate owned |   |   | 1,091  |   |                                                                          |   | — |                                           |   |   | —                                     |   |   |   | 1,091 |   |
| Total                   |   | $      | 5,418  |   |                                                                          | $      | — |                                           |   | $      | —                                     |   |   | $ | 5,418 |   |

|                                 |   | 2010                |    |   | 2009            |   |
|--------------------------------------|--------|---------------------|---------|--------|-----------------|--------|
|                                 |   | Carrying            |    |   | Estimated       |   |   | Carrying |   |   | Estimated |   |
|                                 |   | Amount              |    |   | Fair Value |   |   | Amount |   |   | Fair Value |   |
|                                 |   | (In thousands) |    |
| Assets:                              |   |                |    |   |            |   |   |   |   |   |   |   |
| Cash and due from banks              |   | $                   | 10,443  |   |            | $      | 10,443 |   |   | $ | 5,710 |   |   | $ | 5,710 |   |
| Interest bearing deposits at banks   |   |                | 51,447  |   |            |   | 51,447 |   |   |   | 69,226 |   |   |   | 69,226 |   |
| Investment securities                |   |                | 61,428  |   |            |   | 61,303 |   |   |   | 52,336 |   |   |   | 52,686 |   |
| Mortgage-backed securities           |   |                | 16,146  |   |            |   | 16,146 |   |   |   | 23,355 |   |   |   | 23,355 |   |
| Loans receivable                     |   |                | 286,056 |   |            |   | 285,702 |   |   |   | 285,008 |   |   |   | 285,105 |   |
| FHLB stock                           |   |                | 2,317   |   |            |   | 2,317 |   |   |   | 2,439 |   |   |   | 2,439 |   |
| Accrued interest receivable          |   |                | 1,841   |   |            |   | 1,841 |   |   |   | 2,045 |   |   |   | 2,045 |   |
|                                 |   |                |    |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                         |   |                |    |   |            |   |   |   |   |   |   |   |   |   |   |   |
| NOW and MMDA deposits (1)            |   | $                   | 87,064  |   |            | $      | 87,064 |   |   | $ | 82,779 |   |   | $ | 82,779 |   |
| Other savings deposits               |   |                | 42,847  |   |            |   | 42,847 |   |   |   | 40,892 |   |   |   | 40,892 |   |
| Certificate accounts                 |   |                | 254,684 |   |            |   | 255,978 |   |   |   | 251,583 |   |   |   | 253,534 |   |
| FHLB advances & other borrowings |   |                | 7,384   |   |            |   | 7,384 |   |   |   | 35,090 |   |   |   | 32,960 |   |
| Accrued interest payable             |   |                | 20      |   |            |   | 20 |   |   |   | 192 |   |   |   | 192 |   |
| Off balance sheet instruments        |   |                | — |   |            |   | — |   |   |   | — |   |   |   | — |   |

----

----

|                                       |   | December 31, |       |
|--------------------------------------------|--------|-------------------|------------|
|                                       |   | 2010              |       |   | 2009 |   |
| ASSETS:                                    |   |              |       |   |   |   |
| Cash and cash equivalents                  |   | $                 | 957,096    |   |   | $ | 1,596,689 |   |
| Loan receivable – ESOP               |   |              | 503,397    |   |   |   | 616,177 |   |
| Investment in Alliance Bank                |   |              | 47,542,800 |   |   |   | 46,231,757 |   |
| Total assets                               |   | $                 | 49,003,293 |   |   | $ | 48,444,623 |   |
|                                       |   |              |       |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY       |   |              |       |   |   |   |   |   |
| LIABILITIES:                               |   |              |       |   |   |   |   |   |
| Total liabilities                          |   | $                 | 12,200     |   |   | $ | — |   |
|                                       |   |              |       |   |   |   |   |   |
| STOCKHOLDERS’ EQUITY                 |   |              |       |   |   |   |   |   |
| Total stockholders' equity                 |   |              | 48,991,093 |   |   |   | 48,444,623 |   |
|                                       |   |              |       |   |   |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |   | $                 | 49,003,293 |   |   | $ | 48,444,623 |   |

|                                                                                 |   | For the Year Ended |      |
|--------------------------------------------------------------------------------------|--------|-----------------------------------|-----------|
|                                                                                 |   | December 31, 2010       |      |   | December 31, 2009 |   |
| INCOME:                                                                              |   |                              |      |   |   |   |
| Interest income                                                                      |   | $                                 | 53,865    |   |   | $ | 56,381 |   |
| Total income                                                                         |   |                              | 53,865    |   |   |   | 56,381 |   |
|                                                                                 |   |                              |      |   |   |   |   |   |
| EXPENSES:                                                                            |   |                              |      |   |   |   |   |   |
| Legal Fees                                                                           |   |                              | 20,000    |   |   |   | 24,000 |   |
| Stock Related Expense                                                                |   |                              | 22,000    |   |   |   | 31,600 |   |
| Capital stock tax                                                                    |   |                              | 7,500     |   |   |   | 1,000 |   |
| Other expense                                                                        |   |                              | 4,400     |   |   |   | — |   |
| Total expenses                                                                       |   |                              | 53,900    |   |   |   | 56,600 |   |
|                                                                                 |   |                              |      |   |   |   |   |   |
| LOSS BEFORE INCOME TAXE BENEFIT AND EQUITY IN UNDISTRUBUTED NET INCOME OF SUBSIDIARY |   |                              | (35       | ) |   |   | (219 | ) |
|                                                                                 |   |                              |      |   |   |   |   |   |
| EQUITY IN UNDISTRUBUTED NET INCOME OF SUBSIDIARY                                     |   |                              | 1,080,421 |   |   |   | 1,358,916 |   |
|                                                                                 |   |                              |      |   |   |   |   |   |
| Income Tax Benefit                                                                   |   |                              | —   |   |   |   | — |   |
|                                                                                 |   |                              |      |   |   |   |   |   |
| NET INCOME                                                                           |   | $                                 | 1,080,386 |   |   | $ | 1,358,697 |   |

----

|                                                                          |   | For the Year Ended |       |
|-------------------------------------------------------------------------------|--------|-----------------------------------|------------|
|                                                                          |   | December 31, 2010       |       |   | December 31, 2009 |   |
| OPERATING ACTIVITIES:                                                         |   |                              |       |   |   |   |
|                                                                          |   |                              |       |   |   |   |
| Net Income                                                                    |   | $                                 | 1,080,386  |   |   | $ | 1,358,697 |   |
| Adjustments to reconcile net income to cash provided by (used in) operations: |   |                              |       |   |   |   |   |   |
| Undistributed net income of subsidiary                                        |   |                              | (1,080,421 | ) |   |   | (1,358,916 | ) |
| Decrease (increase) in other assets                                           |   |                              | —    |   |   |   | 3,600 |   |
| Increase (decrease) in other liabilities                                      |   |                              | 12,200     |   |   |   | (17,000 | ) |
| Net cash provided by (used in) operating activities                           |   |                              | 12,165     |   |   |   | (13,619 | ) |
|                                                                          |   |                              |       |   |   |   |   |   |
| INVESTING ACTIVITIES:                                                         |   |                              |       |   |   |   |   |   |
|                                                                          |   |                              |       |   |   |   |   |   |
| Principal repayments on ESOP loan                                             |   |                              | 112,780    |   |   |   | 106,487 |   |
| Net cash provided by investing activities                                     |   |                              | 112,780    |   |   |   | 106,487 |   |
|                                                                          |   |                              |       |   |   |   |   |   |
| FINANCING ACTIVITIES:                                                         |   |                              |       |   |   |   |   |   |
|                                                                          |   |                              |       |   |   |   |   |   |
| Purchase of treasury stock                                                    |   |                              | (437,319   | ) |   |   | (1,919,112 | ) |
| Dividends paid                                                                |   |                              | (327,219   | ) |   |   | (347,736 | ) |
| Net cash used in financing activities                                         |   |                              | (764,538   | ) |   |   | (2,266,848 | ) |
|                                                                          |   |                              |       |   |   |   |   |   |
| Net decrease in cash and cash equivalents                                     |   |                              | (639,593   | ) |   |   | (2,173,980 | ) |
| Cash and cash equivalents – beginning of period                         |   |                              | 1,596,689  |   |   |   | 3,770,669 |   |
|                                                                          |   |                              |       |   |   |   |   |   |
| Cash and cash equivalents – end of period                               |   | $                                 | 957,096    |   |   | $ | 1,596,689 |   |

----

|   | a) | Under the supervision and with the participation of the Company’s management, including its Chief Executive Officer and Chief Financial Officer, the Company has evaluated the effectiveness of the design and operation of its disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) as of December 31, 2010. Based on such evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that these controls and procedures are designed to ensure that the information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and regulations and are operating in an effective manner. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | Management’s Report on Internal Control Over Financial Reporting |
|--------|----|------------------------------------------------------------------------|

|   | c) | No change in the Company’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d- 15(f) under the Exchange Act) occurred during the fourth fiscal quarter of fiscal 2010 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| No   |   | Description                                                                                                                 |
|------|--------|-----------------------------------------------------------------------------------------------------------------------------|
| 3.1  |   | Articles of Incorporation of Alliance Bancorp, Inc. of Pennsylvania (1)                                                     |
| 3.2  |   | Bylaws of Alliance Bancorp, Inc. of Pennsylvania (1)                                                                        |
| 4.1  |   | Form of Stock Certificate of Alliance Bancorp, Inc. of Pennsylvania (1)                                                     |
| 10.1 |   | Alliance Bancorp, Inc. of Pennsylvania Amended and Restated Directors Retirement Plan *(2)                                  |
| 10.2 |   | Alliance Bank Amended and Restated Supplemental Executive Retirement Plan and Participation Agreement 409A Restatement *(2) |
| 10.3 |   | Greater Delaware Valley Savings d/b/a Alliance Bank Endorsement Split Dollar Insurance Agreement*(3)                        |
| 10.4 |   | Amended and Restated Employment Agreement, dated May 21, 2008, between Alliance Bank and Dennis D. Cirucci *(4)             |
| 10.5 |   | Amended and Restated Employment Agreement, dated May 21, 2008, between Alliance Bank and Peter J. Meier *(4)                |
| 10.6 |   | Amended and Restated Employment Agreement, dated May 21, 2008, between Alliance Bank and Suzanne J. Ricci *(4)              |
| 16.1 |   | Subsidiaries – Referenced is made to Item 1. Business – Subsidiaries.                                           |
| 23.1 |   | Consent of ParenteBeard LLC                                                                                                 |
| 31.1 |   | Section 302 Certification of the Chief Executive Officer                                                                    |
| 31.2 |   | Section 302 Certification of the Chief Financial Officer                                                                    |
| 32.1 |   | Section 906 Certification of the Chief Executive Officer                                                                    |
| 32.2 |   | Section 906 Certification of the Chief Financial Officer                                                                    |

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|   | * | Denotes management compensation plan or arrangement. |
|--------|---|------------------------------------------------------|

|   | (1) | Incorporated herein by reference from the Registration Statement on Form S-1 of Alliance Bancorp, Inc. of Pennsylvania (File No. 333-169363) filed with the Securities and Exchange Commission on September 14, 2010, as amended. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Incorporated herein by reference from the Current Report on Form 8-K of Alliance Bancorp, Inc. of Pennsylvania, a federal corporation (File No. 001-33189), filed with the Securities and Exchange Commission on December 18, 2008. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Incorporated herein by reference from the Registration Statement on Form S-1 of Alliance Bancorp, Inc. of Pennsylvania, a federal corporation (File No. 333-136853), filed with the Securities and Exchange Commission on August 23, 2006, as amended. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Incorporated herein by reference from the Current Report on Form 8-K of Alliance Bancorp, Inc. of Pennsylvania, a federal corporation (File No. 001-33189), filed with the Securities and Exchange Commission on May 23, 2008. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                  | ALLIANCE BANCORP, INC, OF PENNSYLVANIA |                    |
|-----------------------|----------------------------------------|-------------------------|
|                  |                                   |                    |   |
| Dated: March 18, 2011 |                                   | By:                     | /s/ Dennis D. Cirucci |   |
|                  |                                   | Dennis D. Cirucci       |   |
|                  |                                   | President and           |   |
|                  |                                   | Chief Executive Officer |   |

| /s/Dennis D. Cirucci                         |   |           |
|----------------------------------------------|--------|----------------|
| Dennis D. Cirucci                            |   |           |
| President                                    |   |           |
| and Chief Executive Officer                  |   | March 18, 2011 |
| (Principal Executive Officer)                |   |           |
|                                         |   |           |
| /s/Peter J. Meier                            |   |           |
| Peter J. Meier                               |   | March 18, 2011 |
| Executive Vice President                     |   |           |
| and Chief Financial Officer                  |   |           |
| (Principal Financial and Accounting Officer) |   |           |
|                                         |   |           |
| /s/William E. Hecht                          |   |           |
| William E. Hecht                             |   | March 18, 2011 |
| Chairman of the Board                        |   |           |
|                                         |   |           |
| /s/J. William Cotter, Jr.                    |   |           |
| J. William Cotter, Jr.                       |   | March 18, 2011 |
| Director                                     |   |           |
|                                         |   |           |
| /s/John A. Raggi                             |   |           |
| John A. Raggi                                |   | March 18, 2011 |
| Director                                     |   |           |

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| /s/Philip K. Stonier  |   |           |
|-----------------------|--------|----------------|
| Philip K. Stonier     |   | March 18, 2011 |
| Director              |   |           |
|                  |   |           |
| /s/G. Bradley Rainer  |   |           |
| G. Bradley Rainer     |   | March 18, 2011 |
| Director              |   |           |
|                  |   |           |
| /s/R. Cheston Woolard |   | March 18, 2011 |
| R. Cheston Woolard    |   |           |
| Director              |   |           |
|                  |   |           |
| /s/Timothy E. Flatley |   | March 18, 2011 |
| Timothy E. Flatley    |   |           |
| Director              |   |           |

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